Question

1. A standing desk consists of a desk top, four legs, and two adjustment motors. Each leg fastens to the desk top with one fastener set. Each adjustment motor requires two fastener sets for attachment to the legs. Currently there is one order outstanding, to make 180 standing desks. There are 500 legs and 20 desk tops in inventory. There are no other large items in inventory, and no scheduled receipts.

(a) Draw the product structure tree.

(b) Calculate the net requirements to fulfill the outstanding order.

Answer 1

a.

A standing desk needs 4 legs, 2 adjustable motors, 1 Desk Top, 8 fastener sets (4 for 4 legs and 4 for 2 motors).

Therefore product structure (Bill of materials) will look like the following.

b.

Net requirement of Level 0 SKU Standing desk is given as 180 units.

The gross requirement for level 1 SKUs are calculated by exploding the Bill of materials.

Gross requirement Legs = 180 * 4 = 720 (as 4 legs are required for each standing desk)

Net Requirement Legs = Gross requirement - Inventory On-hand = 720 -500 =220

Gross requirement Desk Tops= 180 * 1 = 180 (as 1 Desk Tops is required for each standing desk)

Net Requirement Desk Tops= Gross requirement - Inventory On-hand = 180 -20 =160

Gross requirement Adjustable motor= 180 * 2 = 360 (as 2 adjustable motors are required for each standing desk)

Net Requirement Adjustable motor= Gross requirement - Inventory On-hand = 360-0 =360

Gross requirement Fastener set= 180 * 8 = 1440 (as 8 fastener sets are required for each standing desk)

Net Requirement Fastener set= Gross requirement - Inventory On-hand = 1440-0 =1440

Above calculations are summarized below:

SKU	Gross Requirement	Inventory on-hand	Net Requirement
Standing Desk	-	-	180
Legs	720	500	220
Desk Tops	180	20	160
Adjustable motor	360	0	260
Fastener set	1440	0	1440