Question

In: Operations Management

One unit of A is composed of two units of B and three units of C....

One unit of A is composed of two units of B and three units of C. Each B is composed of one unit of F. C is made of one unit of D, one unit of E, and two units of F. Items A, B, C, and D have 15, 40, 36, and 25 units of on-hand inventory, respectively. Items A, B, and C use lot-for-lot (L4L) as their lot-sizing technique, while D, E, and F require multiples of 62, 100, and 90, respectively, to be purchased. B has scheduled receipts of 15 units in Period 1. No other scheduled receipts exist. Lead times are one period for Items A, B, and D, and two periods for Items C, E, and F. Gross requirements for A are 15 units in Period 1, 12 units in Period 2, 50 units in Period 6, and 50 units 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 = 15 LT = 1 SS = 0 Q = L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item B OH = 40 LT = 1 SS = 0 Q = L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item C OH = 36 LT = 2 SS = 0 Q = L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item D OH = 25 LT = 1 SS = 0 Q = 62 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item E OH = 0 LT = 2 SS = 0 Q = 100 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item F OH = 0 LT = 2 SS = 0 Q = 90 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases

Solutions

Expert Solution

Solution :

A, LT - 1, Lot - L4L On Hand 1 2 3 4 5 6 7 8 Total
Gross Requirements 15 12 0 0 0 50 0 50 127
Scheduled Receipts 0 0 0 0 0 0 0 0
Projected On Hand 15 0 0 0 0 0 0 0 0
Net requirements 0 12 0 0 0 50 0 50
Planned order receipts 0 12 0 0 0 50 0 50
Planned order releases 12 0 0 0 50 0 50 0
B, LT - 1, Lot - L4L On Hand 1 2 3 4 5 6 7 8 Total
Gross Requirements 24 0 0 0 100 0 100 0 224
Scheduled Receipts 15 0 0 0 0 0 0 0
Projected On Hand 40 31 31 31 31 0 0 0 0
Net requirements 0 0 0 0 69 0 100 0
Planned order receipts 0 0 0 0 69 0 100 0
Planned order releases 0 0 0 69 0 100 0 0
C, LT - 2, Lot - L4L On Hand 1 2 3 4 5 6 7 8 Total
Gross Requirements 36 0 0 0 150 0 150 0 336
Scheduled Receipts 0 0 0 0 0 0 0 0
Projected On Hand 36 0 0 0 0 0 0 0 0
Net requirements 0 0 0 0 150 0 150 0
Planned order receipts 0 0 0 0 150 0 150 0
Planned order releases 0 0 150 0 150 0 0 0
D, LT - 1, Lot - 62 On Hand 1 2 3 4 5 6 7 8 Total
Gross Requirements 0 0 150 0 150 0 0 0 300
Scheduled Receipts 0 0 0 0 0 0 0 0
Projected On Hand 25 25 25 61 61 35 35 35 35
Net requirements 0 0 125 0 89 0 0 0
Planned order receipts 0 0 186 0 124 0 0 0
Planned order releases 0 186 0 124 0 0 0 0
E, LT - 2, Lot - 100 On Hand 1 2 3 4 5 6 7 8 Total
Gross Requirements 0 0 150 0 150 0 0 0 300
Scheduled Receipts 0 0 0 0 0 0 0 0
Projected On Hand 0 0 0 50 50 0 0 0 0
Net requirements 0 0 150 0 100 0 0 0
Planned order receipts 0 0 200 0 100 0 0 0
Planned order releases 200 0 100 0 0 0 0 0
F, LT - 2, Lot - 90 On Hand 1 2 3 4 5 6 7 8 Total
Gross Requirements 0 0 300 69 300 100 0 0 769
Scheduled Receipts 0 0 0 0 0 0 0 0
Projected On Hand 0 0 0 60 81 51 41 41 41
Net requirements 0 0 300 9 219 49 0 0
Planned order receipts 0 0 360 90 270 90 0 0
Planned order releases 360 90 270 90 0 0 0 0

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