Question

Problem 9-16

One unit of A is composed of two units of B and three units of C. Each B is composed of one unit of F. C is made of one unit of D, one unit of E, and two units of F. Items A, B, C, and D have 15, 50, 45, and 25 units of on-hand inventory, respectively. Items A, B, and C use lot-for-lot (L4L) as their lot-sizing technique, while D, E, and F require multiples of 45, 100, and 100, respectively, to be purchased. B has scheduled receipts of 30 units in Period 1. No other scheduled receipts exist. Lead times are one period for Items A, B, and D, and two periods for Items C, E, and F. Gross requirements for A are 15 units in Period 1, 15 units in Period 2, 60 units in Period 6, and 50 units in Period 8.

Find the planned order releases for all items. (Leave no cells blank - be certain to enter "0" wherever required.)

	Period	1	2	3	4	5	6	7	8
Item A OH = 15 LT = 1 SS = 0 Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item B OH = 50 LT = 1 SS = 0 Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item C OH = 45 LT = 2 SS = 0 Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item D OH = 25 LT = 1 SS = 0 Q = 45	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item E OH = 0 LT = 2 SS = 0 Q = 100	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item F OH = 0 LT = 2 SS = 0 Q = 100	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases

Answer 1

	Period	1	2	3	4	5	6	7	8
Item A	Gross requirements	15	15	0	0	0	60	0	50
OH = 15	Scheduled receipts	0	0	0	0	0	0	0	0
LT = 1	Projected available balance	0	0	0	0	0	0	0	0
SS = 0	Net requirements	0	15	0	0	0	60	0	50
Q = L4L	Planned order receipts	0	15	0	0	0	60	0	50
	Planned order releases	15	0	0	0	60	0	50	0
Item B	Gross requirements	30	0	0	0	120	0	100	0
OH = 50	Scheduled receipts	30	0	0	0	0	0	0	0
LT = 1	Projected available balance	50	50	50	50	0	0	0	0
SS = 0	Net requirements	0	0	0	0	70	0	100	0
Q = L4L	Planned order receipts	0	0	0	0	70	0	100	0
	Planned order releases	0	0	0	70	0	100	0	0
Item C	Gross requirements	45	0	0	0	180	0	150	0
OH = 45	Scheduled receipts	0	0	0	0	0	0	0	0
LT = 2	Projected available balance	0	0	0	0	0	0	0	0
SS = 0	Net requirements	0	0	0	0	180	0	150	0
Q = L4L	Planned order receipts	0	0	0	0	180	0	150	0
	Planned order releases	0	0	180	0	150	0	0	0
Item D	Gross requirements	0	0	180	0	150	0	0	0
OH = 25	Scheduled receipts	0	0	0	0	0	0	0	0
LT = 1	Projected available balance	25	25	25	25	10	10	10	10
SS = 0	Net requirements	0	0	155	0	125	0	0	0
Q = 45	Planned order receipts	0	0	180	0	135	0	0	0
	Planned order releases	0	180	0	135	0	0	0	0
Item E	Gross requirements	0	0	180	0	150	0	0	0
OH = 0	Scheduled receipts	0	0	0	0	0	0	0	0
LT = 2	Projected available balance	0	0	20	20	70	70	70	70
SS = 0	Net requirements	0	0	180	0	130	0	0	0
Q = 100	Planned order receipts	0	0	200	0	200	0	0	0
	Planned order releases	200	0	200	0	0	0	0	0
Item F	Gross requirements	0	0	360	70	300	100	0	0
OH = 0	Scheduled receipts	0	0	0	0	0	0	0	0
LT = 2	Projected available balance	0	0	40	70	70	70	70	70
SS = 0	Net requirements	0	0	360	30	230	30	0	0
Q = 100	Planned order receipts	0	0	400	100	300	100	0	0
	Planned order releases	400	100	300	100	0	0	0	0

Calculations