Question

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 1 0 L(2), C(1), K(3) L 2 11 B(2), J(3) C 3 17 G(2), B(2) K 4 23 H(4), B(2) B 3 34 J 3 25 G 3 7 H 3 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 11. 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)

Net Requirement of End Item = Gross Requirement - On Hand Inventory = 43-0 = 43 units

Net Requirement of L = Net Requirement of End Item*2 - On Hand Inventory

Net Requirement of L = 43*2 - 11 = 75 units

Net Requirement of C = Net Requirement of End Item*1 - On Hand Inventory

Net Requirement of C = 43*1 - 17 = 26 units

Net Requirement of K = Net Requirement of End Item*3 - On Hand Inventory

Net Requirement of K = 43*3 - 23 = 106

Net Requirement of B = Net Requirement of L*2 + Net Requirement of C*2 + Net Requirement of K*2 - 34

Net Requirement of B = 75*2 + 26*2 + 106*2 - 34

Net Requirement of B = 380

b)

End Item to be shipped in Week 11. Assembly to be started in Week 10 (Lead Time 1 Week)

L,C & K should be ready by Week 10.

Assembly of L should be started in Week 8 (Lead Time 2 Week)

Assembly of C should be started in Week 7 (Lead Time 3 Week)

Assembly of K should be started in Week 6 (Lead Time 4 Week)

B should be ready by Week 3 (Lead Time 3 weeks (it is part of K which should be ready by Week 6))

J Should be ready by Week 5. (Lead Time 3 weeks)

G should be ready by Week 4. (Lead Time 3 weeks)

H should be ready by Week 3. (Lead Time 3 weeks)

From above, Latest Week = Week 3