(a) Important Notes: 1. No lead time is given for the end item R. So, we take it
ID: 374140 • Letter: #
Question
(a)
Important Notes:
1. No lead time is given for the end item R. So, we take it as zero weeks.
2. A requirement of 20 finished item at the end of week 27 does not mean anything as the planning horizon is from week 32 to week 40. So, we consider this a typo and taken as week 37.
Net requirements for end item R
Least unit Cost Calculations
Decision 1: Club net requirements for week 32 and 33 in week 32
Decision 2: Order net requirements for week 34 and 35 individually in respective weeks
Decision 3: Club net requirements for week 36 and 37 in week 36.
Decision 4: Order net requirements for week 38, 39, and 35 individually in respective weeks.
Decision 5: Club net requirements for week 38 and 39 in week 38.
(b)
End Item: R Production Lead Time: 2 weeks Lot size rule: Lot-for-Lot Week No. 32 33 34 35 36 37 38 39 40 Gross Requirements 250 125 410 600 200 300 450 350 250 Adjusted Scheduled Receipts 0 0 0 0 0 0 0 0 0 Projected on-hand 10 0 0 0 0 0 0 0 0 0 Net Requirements 240 125 410 600 200 320 450 350 250 Planned order receipt Planned order release Sub Item: S Production Lead Time: 2 weeks Lot size rule: Lot-for-Lot Week No. 32 33 34 35 36 37 38 39 40 Gross Requirements 480 250 820 1200 400 640 900 700 500 Adjusted Scheduled Receipts 0 0 0 0 20 0 0 0 0 Projected on-hand 0 0 0 0 0 0 0 0 0 0 Net Requirements 480 250 820 1200 380 320 900 700 500 Planned order receipt Planned order releaseExplanation / Answer
2. Consider the following product structure diagram. The finished product (R) requires sub- e numbers in parenthesis represent the quantity required for components S through X. Th each parent item (end item) S (2) lead time = 2 weeks lead time 4 weeks V (4) lead time = 1 week lead time = 3 weeks lead time = 2 weeks lead time = 1 week Demands for the finished product for weeks 32 through 40 are 250, 125, 400, 600, 200, 300, 450, 350, and 250. The company uses a holding cost of S0.30 per unit per week. The setup cost for the production of subcomponent S is S175. The company has a starting inventory of 10 finished products. They expect to receive 10 returns of finished products in Week 34. They require an inventory level of 20 finished products at the end of Week 27. The company also expects to receive 20 units of subcomponent S in week 36 (as part of a deal with a partnering company who has excess inventory) a) Use least unit cost to determine the planned order release for subcomponent S. (b) Find the time phased net requirements for subcomponent V.
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