The gross requirement of component C in week 7 is 854 units, and the amount on h
ID: 376680 • Letter: T
Question
The gross requirement of component C in week 7 is 854 units, and the amount on hand for this item in week 7 is 157 units. Safety stock for component C is 74. The lead time to deliver this component from a supplier is 20 work days (4 weeks). The planned-order releases for component M should be:
1,085 units in week 1.
937 units in week 2.
771 units in week 3.
365 units in week 4.
none of the above
a.1,085 units in week 1.
b.937 units in week 2.
c.771 units in week 3.
d.365 units in week 4.
e.none of the above
Explanation / Answer
Planned order release = Demand + safety stock - Current on-hand
= 854 + 74 - 157
= 771 units
As it has lead time of 4 weeks and is required in 7th week, hence planned order release should be 771 units in Week 3.
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