Question

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

Item	End	B	C	D	E	F	G	H
LT (wk)	2	2	2	2	2	2	2	2
Amount on hand	0	8	11	23	9	28	6	0

a. If 22 units of the end item are to be assembled, how many additional units of E are needed? (Hint: You don't need to develop an MRP plan to determine this.)

Additional units            

b. An order for the end item is scheduled to be shipped at the start of week 14. 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 for this part either.)

The latest week            

Answer 1

Each unit requires item (B, C and D) and E is require in B,C and D items.

So to find the value of E we have to determine the net requirements for B, C and D

Now end unit requires 2 B’s

And units to be assembled is 22

Amount on Hand = 8

B = 22 * 2 = 40

B = 44 – amount on hand

B = 44 – 8

B = 36

End unit needed 1 unit of C

Units to be assembled = 22

Amount on hand = 11

C = 22* 1

C = 22

C = 22 – Amount on hand

C = 22 – 11

C = 11

End units requires 3 units of D’s

Unit to be assembled = 22

Amount on hand = 23

D = 22 * 3

D = 66

D = 66 – Amount on Hand

D = 66 – 23

D = 43

Answer A

Unit needed for E = (B * 2) + (C * 2) + (D * 2) - Amount on Hand of E

E = (36 * 2) + (11*2) + (43 * 2) - 9

E = 72 + 22 + 86 - 9

E = 180 - 9

E = 171

so 171 units of E is needed

Answer B

There are three sections that need to be complete in order for the end item to be complete i.e.

(1) B, E, and F

(2) C, G, and E,

(3) D, H and E

1. B week + E week + F week

2 + 2 +2 = 6

2. C weeks + G weeks + E weeks

2 + 2 + 2 = 6

3. D weeks + H weeks + E weeks

2 + 2 + 2 = 6

Latest  week = Start of week - 6 weeks

= 14 - 6

Latest week = 8