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 2 0 L(2), C(1), K(3) L 2 8 B(2), J(3) C 3 12 G(2), B(2) K 3 17 H(4), B(2) B 2 32 J 3 27 G 3 5 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 13. 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

Answer: Let's present the given data in a tabular and diagrammatical form as mentioned below:

(Note: We simply have shown the table in a verticle form to get the above diagram)

Which means, Each unit of L requires 2 Units of B and 3 Units of J,

Each unit of C requires 2 units of each item G and item B

Each unit of K requires 4 units of H and 2 units of B, and

End Item requires 2 units of L, 1 unit of C, and 3 units of K

Answer a) Here, 43 units of the end item to be produced. We will find the required additional units by applying the following formula:

Additional Units of Item B =

Calculate the following table as mentioned below:

Where Col6 = [(Col2 X Col3) - Col4] X Col5,

Total units of B required for 43 units = Sum of Col3

Hence, Additional units required for Item B = Total Units of B required for 43 end items - Amount on hand of item B = 442 - 32 = 410 Units

Answer b) Here, first the total lead time for each of the path mentioned in the above diagram:

Here we note that the longest lead time is 8 weeks.

Hence, The latest week in which the order can be started The latest week in which the order can be started and still be ready on the ship on time =

= Scheduled start of the week - the longest lead time

Where scheduled start of week = 13 (as given in the question)

The latest week in which the order can be started and still be ready on the ship on time= 13 - 8 = 5 Week