Product A is made according to the bill of materials diagram shown below. The de
ID: 2747421 • Letter: P
Question
Product A is made according to the bill of materials diagram shown below. The demand for Product ‘A’ is as follows:
Week >
5
6
7
8
9
10
11
12
Demand for ‘A’
300
250
150
400
300
250
100
250
Product A has a lead-time of one week.
The table below shows additional data for the items B, C, and D.
B
C
D
Lot size rule
L4L
Lots of 800 units each
L4L
Lead-time
2
1
1
Beginning inventory
0
420
50
Scheduled receipts
100 in week 3
300 in week 2
none
Determine the planned order release for components B, C and D
Week >
5
6
7
8
9
10
11
12
Demand for ‘A’
300
250
150
400
300
250
100
250
Explanation / Answer
Item = A LT : 1 Week Week 5 6 7 8 9 10 11 12 Gross Requirement 300 250 150 400 300 250 100 250 Scheduled Receipts 0 0 0 0 0 0 0 0 Projected On Hand 0 0 0 0 0 0 0 0 0 Net Requirements 300 250 150 400 300 250 100 250 Planned Receipts 300 250 150 400 300 250 100 250 Planned Order Release 250 150 400 300 250 100 250 0 Projected On Hand Calculation = Last Period Closing + Scheduled Receipt + Planned Receipt - Gross Requirement Net Requirement = Last Period Closing + Scheduled Receipt - Gross Requirement (If the above calculation results in negative amount, then such amount is taken as Net Requirement, else 0) Planned Receipt = If Net Requirement > 0, Planned Receipt as per Lot Size Planned Order Release = If Planned Receipt >0, Order as per Lead Time to be placed Item = B L4L LT : 2 Week Week 3 4 5 6 7 8 9 10 11 12 Gross Requirement 0 0 600 500 300 800 600 500 200 500 Scheduled Receipts 100 0 0 0 0 0 0 0 0 0 Projected On Hand 0 100 100 0 0 0 0 0 0 0 0 Net Requirements 0 0 500 500 300 800 600 500 200 500 Planned Receipts 0 0 500 500 300 800 600 500 200 500 Planned Order Release 500 500 300 800 600 500 200 500 0 0 Item = C Lot Size = 800 LT : 1 Week Week 2 3 4 5 6 7 8 9 10 11 12 Gross Requirement 0 0 0 1500 1250 750 2000 1500 1250 500 1250 Scheduled Receipts 300 0 0 0 0 0 0 0 0 0 0 Projected On Hand 420 720 720 720 20 370 420 20 120 470 770 320 Net Requirements 0 0 0 780 1230 380 1580 1480 1130 30 480 Planned Receipts 0 0 0 800 1600 800 1600 1600 1600 800 800 Planned Order Release 0 0 800 1600 800 1600 1600 1600 800 800 0 Item = D L4L LT : 2 Week Week 4 5 6 7 8 9 10 11 12 Gross Requirement 0 600 500 300 800 600 500 200 500 Scheduled Receipts 0 0 0 0 0 0 0 0 0 Projected On Hand 50 50 0 0 0 300 0 0 0 200 Net Requirements 0 550 500 300 800 300 500 200 500 Planned Receipts 0 550 500 300 1100 300 500 200 700 Planned Order Release 550 500 300 1100 300 500 200 700 0
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