Question

Problem 9-17

Each unit of A is composed of one unit of B, two units of C, and one unit of D. C is composed of two units of D and three units of E. Items A, C, D, and E have on-hand inventories of 25, 20, 40, and 40 units, respectively. Item B has a scheduled receipt of 15 units in Period 1, and C has a scheduled receipt of 50 units in Period 1. Lot-for-lot (L4L) is used for Items A and B. Item C requires a minimum lot size of 60 units. D and E are required to be purchased in multiples of 110 and 60, respectively. Lead times are one period for Items A, B, and C, and two periods for Items D and E. The gross requirements for A are 40 in Period 2, 30 in Period 5, and 45 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 = 25 LT = 1 SS = 0 Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item B OH = 0 LT = 1 SS = 0 Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item C OH = 20 LT = 1 SS = 0 Q = 60	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item D OH = 40 LT = 2 SS = 0 Q = 110	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item E OH = 40 LT = 2 SS = 0 Q = 60	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases

Answer 1

Period Item A	1	2	3	4	5	6	7	8
Gross requirements	0	40	0	0	30	0	0	45
Schedled receipts	0	0	0	0	0	0	0	0
Projected on hand inventory 25	25	0	0	0	0	0	0	0
Net requirements	0	15	0	0	30	0	0	45
Planned order receipts	0	15	0	0	30	0	0	45
Planned order release	15	0	0	30	0	0	45	0

Period Item B	1	2	3	4	5	6	7	8
Gross requirements	15	0	0	30	0	0	45	0
Schedled receipts	15	0	0	0	0	0	0	0
Projected on hand inventory 0	0	0	0	0	0	0	0	0
Net requirements	0	0	0	30	0	0	45	0
Planned order receipts	0	0	0	30	0	0	45	0
Planned order release	0	0	30	0	0	45	0	0

Period Item C   1   2   3   4   5   6   7   8
Gross requirements   30   0   0   60   0   0   90   0
Schedled receipts   50   0   0   0   0   0   0   0
Projected on hand inventory 20   40   40   40   40   40   40   10   0
Net requirements   0   0   0   20   0   0   50   0
Planned order receipts   0   0   0   60   0   0   60   0
Planned order release   0   0   60   0   0   60   0   0

Period Item E   1   2   3   4   5   6   7   8
Gross requirements   0   0   180   0   0   180   0   0
Schedled receipts   0   0   0   0   0   0   0   0
Projected on hand inventory 40   40   40   40   40   40   40   40   40
Net requirements   0   0   140   0   0   140   0   0
Planned order receipts   0   0   180   0   0   180   0   0
Planned order release   180   0   0   180   0   0   0   0

Period Item D   1   2   3   4   5   6   7   8
Gross requirements   15   0   120   30   0   120   45   0
Schedled receipts   0   0   0   0   0   0   0   0
Projected on hand inventory 40   25   25   15   95   95   85   40   40
Net requirements   0   0   95   15   0   25   0   0
Planned order receipts   0   0   110   110   0   110   0   0
Planned order release   110   110   0   110   0   0   0   0