We can write this problem in the following way. B + C = A (As A is made from com
ID: 373489 • Letter: W
Question
We can write this problem in the following way.
B + C = A (As A is made from components B and C)..... (1)
Similarly,
B = D + E
C = F + H
E = H + G
Substituting the values in (1) for B, C, E the equation will become
(D + E) + (F + H) = A
D + H + G + F + H = A .... (2)
OR....
D + 2H + G + F = A ......(3)
What lead time (in weeks) is needed to respond to a customer order for product A, assuming no existing inventories or scheduled receipts? ... The answer can be found by substituting the lead times of D,H,G,F in (3). Therefore, 22 weeks is the lead time to arrange all input items and 1 week for A. The total lead time will be 23 weeks.
What is the customer response time if all purchased items (i.e., D, F, G, and H) are in inventory?. Since all the items are inventory, the lead time will be 1 week which is for the lead time for A.
If you are allowed to keep just one purchased item in stock, which one would you choose? The higher lead times items can be kept in inventory to reduce overall lead time. Hence the answer can be D or H or F.
Explanation / Answer
Product A is made from components B and C. Item B, in turn, is made from D and E. Item C also is an intermediate item, made from F and H. Finally, intermediate item E is made from H and G. Note that item H has two parents. The following are item lead times:
What lead time (in weeks) is needed to respond to a customer order for product A, assuming no existing inventories or scheduled receipts?
What is the customer response time if all purchased items (i.e., D, F, G, and H) are in inventory?
If you are allowed to keep just one purchased item in stock, which one would you choose?
Item A B C D E F G H Lead Time (weeks) 1 2 2 6 5 6 4 3Related Questions
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