Question

Problem 12:9

Assume that you are the manager of a shop that assembles power tools. You have just received an order for 57 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws is

Item	Lead Time (weeks)	On Hand		Components
Saw	2	15		A(2), B(1), C(4)
A	1	10		E(3), D(1)
B	2	5		D(2), F(3)
C	2	65		E(2), D(2)
D	1	20
E	1	10
F	2	30

  
Develop the material requirements plan for component E using lot-for-lot ordering. (Leave no cells blank - be certain to enter "0" wherever required.)

Item: E(3) & E(2) LT = 1 wk.	Beg. Inv.	1	2	3	4	5	6	7	8
Gross requirements
Scheduled receipts
Projected on hand
Net requirements
Planned order receipt
Planned order release

Answer 1

Following is the bill of material

Saw

Order received = 57

On-Hand inventory = 15

Balance Order = 57 – 15

                         = 42

Total saw required by the company is 42

No. of A component required = 2 x 42

                                                 = 84

On-Hand inventory = 10

Total A component required = 84 – 10

                                                  = 74

No. of E component required (Predecessor A) = 74 x 3

                                                                           = 222

No. of C component required = 4 x 42

                                                 = 168

On-Hand inventory = 65

Total C component required = 168 – 65

                                               = 103

No. of E component required (Predecessor C) = 103 x 2

= 206

The lead time of Saw is 2 week. Therefore, Saw must execute in week 6 so that it fully available in the week 8

The lead time of A is 1 week, so it must execute in 5^th week to receive in 6^th week. Similarly, lead time of C is 2 week and therefore it must execute in 4^th week

Following is the MRP of the component E