In: Operations Management
One unit of A is made of two units of B, three units of C, and two units of D. B is composed of one unit of E and two units of F. C is made of two units of F and one unit of D. E is made of two units of D. Items A, C, D, and F have one-week lead times; B and E have lead times of two weeks. Lot-for-lot (L4L) lot sizing is used for Items A, B, C, and D; lots of size 60 and 200 are used for Items E and F, respectively. Item C has an on-hand (beginning) inventory of 10; D has an on-hand inventory of 50; all other items have zero beginning inventory. We are scheduled to receive 20 units of Item E in Week 2; there are no other scheduled receipts.
If 20 units of A are required in Week 8, use the low-level-coded bill-of-materials to find the necessary planned order releases for all components. (Leave no cells blank - be certain to enter "0" wherever required.)
| Period | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |||
| Item A OH = 0 LT = 1 SS = 0 Q = L4L |
Gross requirements | ||||||||||
| Scheduled receipts | |||||||||||
| Projected on hand | |||||||||||
| Net requirements | |||||||||||
| Planned order receipts | |||||||||||
| Planned order releases | |||||||||||
| Item B OH = 0 LT = 2 SS = 0 Q = L4L |
Gross requirements | ||||||||||
| Scheduled receipts | |||||||||||
| Projected on hand | |||||||||||
| Net requirements | |||||||||||
| Planned order receipts | |||||||||||
| Planned order releases | |||||||||||
| Item C OH = 10 LT = 1 SS = 0 Q = L4L |
Gross requirements | ||||||||||
| Scheduled receipts | |||||||||||
| Projected on hand | |||||||||||
| Net requirements | |||||||||||
| Planned order receipts | |||||||||||
| Planned order releases | |||||||||||
| Item E OH = 0 LT = 2 SS = 0 Q = 60 |
Gross requirements | ||||||||||
| Scheduled receipts | |||||||||||
| Projected on hand | |||||||||||
| Net requirements | |||||||||||
| Planned order receipts | |||||||||||
| Planned order releases | |||||||||||
| Item F OH = 0 LT = 1 SS = 0 Q = 200 |
Gross requirements | ||||||||||
| Scheduled receipts | |||||||||||
| Projected on hand | |||||||||||
| Net requirements | |||||||||||
| Planned order receipts | |||||||||||
| Planned order releases | |||||||||||
| Item D OH = 50 LT = 1 SS = 0 Q = L4L |
Gross requirements | ||||||||||
| Scheduled receipts | |||||||||||
| Projected on hand | |||||||||||
| Net requirements | |||||||||||
| Planned order receipts | |||||||||||
| Planned order releases | |||||||||||
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| Period | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
| Item A | Gross requirements | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20 |
| OH = 0 | Scheduled receipts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| LT = 1 | Projected on hand | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| SS = 0 | Net requirements | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20 |
| Q = L4L | Planned order receipts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20 |
| Planned order releases | 0 | 0 | 0 | 0 | 0 | 0 | 20 | 0 | |
| Item B | Gross requirements | 0 | 0 | 0 | 0 | 0 | 0 | 40 | 0 |
| OH = 0 | Scheduled receipts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| LT = 2 | Projected on hand | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| SS = 0 | Net requirements | 0 | 0 | 0 | 0 | 0 | 0 | 40 | 0 |
| Q = L4L | Planned order receipts | 0 | 0 | 0 | 0 | 0 | 0 | 40 | 0 |
| Planned order releases | 0 | 0 | 0 | 0 | 40 | 0 | 0 | 0 | |
| Item C | Gross requirements | 0 | 0 | 0 | 0 | 0 | 0 | 60 | 0 |
| OH = 10 | Scheduled receipts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| LT = 1 | Projected on hand | 10 | 10 | 10 | 10 | 10 | 10 | 0 | 0 |
| SS = 0 | Net requirements | 0 | 0 | 0 | 0 | 0 | 0 | 50 | 0 |
| Q = L4L | Planned order receipts | 0 | 0 | 0 | 0 | 0 | 0 | 50 | 0 |
| Planned order releases | 0 | 0 | 0 | 0 | 0 | 50 | 0 | 0 | |
| Item E | Gross requirements | 0 | 0 | 0 | 0 | 40 | 0 | 0 | 0 |
| OH = 0 | Scheduled receipts | 0 | 20 | 0 | 0 | 0 | 0 | 0 | 0 |
| LT = 2 | Projected on hand | 0 | 20 | 20 | 20 | 40 | 40 | 40 | 40 |
| SS = 0 | Net requirements | 0 | 0 | 0 | 0 | 20 | 0 | 0 | 0 |
| Q = 60 | Planned order receipts | 0 | 0 | 0 | 0 | 60 | 0 | 0 | 0 |
| Planned order releases | 0 | 0 | 60 | 0 | 0 | 0 | 0 | 0 | |
| Item F | Gross requirements | 0 | 0 | 0 | 0 | 80 | 100 | 0 | 0 |
| OH = 0 | Scheduled receipts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| LT = 1 | Projected on hand | 0 | 0 | 0 | 0 | 120 | 20 | 20 | 20 |
| SS = 0 | Net requirements | 0 | 0 | 0 | 0 | 80 | 0 | 0 | 0 |
| Q = 200 | Planned order receipts | 0 | 0 | 0 | 0 | 200 | 0 | 0 | 0 |
| Planned order releases | 0 | 0 | 0 | 200 | 0 | 0 | 0 | 0 | |
| Item D | Gross requirements | 0 | 0 | 120 | 0 | 0 | 50 | 40 | 0 |
| OH = 50 | Scheduled receipts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| LT = 1 | Projected on hand | 50 | 50 | 0 | 0 | 0 | 0 | 0 | 0 |
| SS = 0 | Net requirements | 0 | 0 | 70 | 0 | 0 | 50 | 40 | 0 |
| Q = L4L | Planned order receipts | 0 | 0 | 70 | 0 | 0 | 50 | 40 | 0 |
| Planned order releases | 0 | 70 | 0 | 0 | 50 | 40 | 0 | 0 |

