The product structure tree for end item E follows. The manager wants to know the material requirements for ordered part R that will be needed to complete 120 units of E by the start of week 5. lead time for items are one week for level 0 items, one week for level 1 items, and two weeks for level 2

Question

The product structure tree for end item E follows . The manager wants to know the material requirements for ordered part R that will be needed to complete 120 units of E by the start of week 5. lead time for items are one week for level 0 items, one week for level 1 items , and two weeks for level 2 items .There is a scheduled receipt of 60 units of M at the start of week 2 and 100 units of R at the start of week 1. Lot-for-lot ordering is used.

Accepted Answer

A partial assembly-time chart that includes R and leads to completion of E by the start of week 5 looks this:

The table entries are arrived at as follows:

Master schedule: 120 units of E to be available at the start of week 5.

Item E: Gross requirements equal the quantity specified in the master production schedule. Since there is no on-hand inventory, net requirements also equal 120 units. Using lot-for-lot ordering, 120 units must be scheduled to be available at the start of week 5. Because there is a one - week lead time for assembly of Es , an order will need to be released (i.e., work started ) at the beginning of week 4 .

Item M : The gross requirements for M are three times the net requirements for E, because each E requires three Ms. These must be available at the start of week 4. The net requirements are 60 units requires three Ms. These must be available at start of week 4 . The net requirements are 60 units fewer due to the 60 units expected to be on hand at that time. Hence , 300 additional units of M must be available at the start of week 4. With the one-week lead time, there must be an order release at the start of week 3.

Item R: Because each M requires two units of R, 600 Rs will be needed to assemble 300 units of M. However, 100 units will be on hand , so only 500 need to be ordered . Because there is a lead time of two weeks, the 500 Rs must be ordered at the start of week 1.

The master schedule for E and requirements plans for E,M, and R follow.

Question 12.P.2: The product structure tree for end item E follows. The manag...

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