Question

Product A is made from components B and C. Item​ B, in​ turn, is made from D and E. Item C also is an intermediate​ item, made from F and H.​ Finally, intermediate item E is made from H and G. Note that item H has two parents. The following are item lead​ times:

Item	A	B	C	D	E	F	G	H
Lead Time​ (weeks)	1	1	2	2	6	4	4	6

a. What lead time​ (in weeks) is needed to respond to a customer order for product​ A, assuming no existing inventories or scheduled​ receipts?

____ weeks.

b. What is the customer response time if all purchased items​ (i.e., D,​ F, G, and​ H) are in​ inventory?

____ weeks.

c. If you are allowed to keep just one purchased item in​ stock, which one would you​ choose?

▼

Item B

Item H

Item E

Item C

Item F

Item D

Item G

Answer 1

BOM path	Total lead time= sum of all lead times in a path
ABD	4
ABEH	14
ABEG	12
ACF	7
ACH	9

a. The lead time​ (in weeks) is needed to respond to customer orders for product​ A, assuming no existing inventories or scheduled​ receipts

14 weeks. (Longest BOM path length)

b. if all purchased items​(i.e., D,​ F, G, and​ H) are in​ inventory

BOM path	Total lead time= sum of all lead times in a path
ABD	2
ABEH	8
ABEG	6
ACF	3
ACH	3

8 weeks (Longest BOM path length)

c. Longest BOM length is 8 weeks, And H has the highest lead time therefore, I would keep H in stock.

Item H