In: Other
The demand for subassembly S is 110 units in week 7. Each unit of S requires 2 units of T and 1 unit of U. Each unit of T requires 1 unit of V, 1 unit of W, and 1 unit of X. Finally, each unit of U requires 1 unit of Y and 2 units of Z. One firm manufactures all items. It takes 2 weeks to make S, 1 week to make T, 2 weeks to make U, 1 week to make V, 3 weeks to make W, 2 weeks to make X, 2 weeks to make Y, and 1 week to make Z.
Construct a gross material requirements plan.
Answer: Demand for Sub-assembly S = 110 units Time -Week 7
The Gross requirements plan for the same is given in the following table:
Materials |
Week 1 |
Week 2 |
Week 3 |
Week 4 |
Week 5 |
Week 6 |
Week 7 |
Lead time |
V. Required date Order release |
220 |
220 |
1 week |
|||||
W. Required date Order release |
220 |
220 |
220 |
220 |
3 weeks |
|||
X. Required date Order release |
220 |
220 |
220 |
2 weeks |
||||
Y. Required date Order release |
110 |
110 |
110 |
2 weeks |
||||
Z. Required date Order release |
220 |
220 |
1 week |
|||||
T. Required date Order release |
220 |
220 |
1 week |
|||||
U. Required date Order release |
110 |
110 |
110 |
2 weeks |
||||
S. Required date Order release |
110 |
110 |
110 |
2 weeks |
Therefore, according to Gross Requirements material plan, 220 units of W and 110 units of Y production are started from day 1 of week 1. 220 units of W are released after 3rd week and 110 units of Y are released after 2nd week
In 2nd week 220 units of X and 220 units of Z production are started. 220 units of X are released after 3rd week and 220 units of 2 are released after 2nd week
At 3rd week – 220 units of Z and 110 units of Y are ready, so production of U which requires 220 units of Z and 110 units of Y is started from 3rd week. 110 units of U are produced bye end of 4th week
Also, in 3rd week – 220 units of production of V is started which are released by end of 3rd week
In 4th week, 220 units of T production is started which requires 220 units of V, 220 units of W and 220 units of X. 220 units of T are produced by end of 4th week
In 5th week – we have 220 units of T and 110 units of U which are required for production of 110 units of S. S requires lead time of 2 weeks and so by end of 6th week 110 units of S are produced
In 7th week – 110 Units of S are made ready