Question

Problem 12-3

The following table lists the components needed to assemble an end item, lead times (in weeks), and quantities on hand.

Item		Lead Time	Amount on Hand			Direct Components
End		3		0		L(2), C(1), K(3)
L		3		9		B(2), J(3)
C		4		14		G(2), B(2)
K		4		19		H(4), B(2)
B		3		27
J		4		32
G		4		5
H		2		0

a. If 43 units of the end item are to be assembled, how many additional units of B are needed? (Hint: You don’t need to develop an MRP plan.)

Additional units             

b. An order for the end item is scheduled to be shipped at the start of week 15. What is the latest week that the order can be started and still be ready to ship on time? (Hint: You don’t need to develop an MRP plan.)

The latest week            

Answer 1

(a) To assemble end item, 2 units of L, 1 unit of C, and 3 units of K are required.

To assemle L, c, and L, 2 units of B in each are required.

Hence to assemle an end item, Total B units required = (2*2) + (1*2) + (3*2) = 12 units of B for 1 end item

Total B units to assemble 43 end item = 43 * 12 = 516 units

Available inventory of B = 27 units

Additional units of B required = 489 units

(b) To complete an end item, inventory required are 12 units of H, 12 units of B, 2 units of G, 6 units of J.

All these inventories are already available in stock except for H. H item has a lead time of 2 weeks, hence order can be started from the start of week 13, and H will be delivered in week 15 and all items can be assembled and shippeed in the start of week 15.