The following table lists the components needed to assemble an end item, lead ti
ID: 343128 • Letter: T
Question
The following table lists the components needed to assemble an end item, lead times (in weeks), and quantities on hand.
a. If 43 units of the end item are to be assembled, how many additional units of B are needed? (Hint: You don’t need to develop an MRP plan.)
Additional units (488 is wrong)
b. An order for the end item is scheduled to be shipped at the start of week 11. What is the latest week that the order can be started and still be ready to ship on time? (Hint: You don’t need to develop an MRP plan.)
The latest week (5 is wrong)
on Hand Direct Components End 1 0 L(2), C(1), K(3) L 2 11 B(2), J(3) C 3 17 G(2), B(2) K 4 23 H(4), B(2) B 3 34 J 3 25 G 3 7 H 3 0
Explanation / Answer
a) End item required = 43
Units of L required = 43*2 = 86. Amount in hand of L = 11
Net requirement of L = 86-11 = 75
Gross requirement of B for L = 75*2 = 150
Units of C required = 43*1 = 43. Amount in hand of C = 17
Net requirement of L = 43-17 = 26
Gross requirement of B for C = 26*2 = 52
Units of K required = 43*3 = 129. Amount in hand of K = 23
Net requirement of K = 129-23 = 106
Gross requirement of B for K = 106*2 = 212
Total requirement of B = 150+52+212 = 414
Available on hand of B = 34
Net requirement = 414-34 = 380
b) End item must be ready by week 11 beginning. As Lead time is 1 week, items L,C &K must be ready by week 9 ending
As the Lead time of B,J,G & H is same, it will depend on L,C & K. Of this, K has highest Lead time
So, for K, B & H must be ready 4 week in advance. Thus, by week 5 end, B & H must be ready so that K may be made in 4 weeks to give by week 9 end
H or B have 3 week lead time so must be started 3 week in advance which is week 2 end.
Hence, the latest time order can be started is Week 3 beginning
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