The following table lists the components needed to assemble an end item, lead ti

Question

The following table lists the components needed to assemble an end item, lead times, and quantities on hand.

a. If 18 units of the end item are to be assembled, how many additional units of E are needed? (Hint: You don't need to develop an MRP plan to determine this.)

Additional units             

b. An order for the end item is scheduled to be shipped at the start of week 13. 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 for this part either.)

The latest week            

Item End B C D E F G H LT (wk) 2 2 2 2 2 2 2 2 Amount on hand 0 8 11 23 9 27 4 0 End Item D (3) B (2) E (2) F(3) G (2) E (2) H (4) E (21

Explanation / Answer

a)

Additional units of B needed = 2*End item - Amount On hand of B = 2*18 - 8 = 28

Additional units of C needed = 1*End item - Amount On hand of C = 1*18 - 11 = 7

Additional units of D needed = 3*End item - Amount On hand of D = 3*18 - 23 = 31

Additional units of E needed = 2*B + 2*C + 2*D - Amount On hand of E = 2*28+2*7+2*31 - 9 = 123

b) The End item and each of the subassemblies and components need a lead time of 2 weeks. There are 3 levels in the product structure tree. Therefore, it takes 2*3 = 6 weeks to delivery the End item from the start.

Therefore, Latest week = 13-6 = 7

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