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(E) Your company sells three products: 1, 2, and 3. The aggregate plan for July,

ID: 384648 • Letter: #

Question

(E) Your company sells three products: 1, 2, and 3. The aggregate plan for July, August, and September is shown below, along with the Master Production Schedule (MPS) and the Bill of Materials (BOM) for Products 1, 2, and 3. How many of part number 1003 need to be ordered to fulfill this production plan? Answer Box: Aggregate Plan- Months sJuly 2000 August 4500 September 3500 Weeks1 Product 1 Product 2500 Product 3250 3 2505 1000 67 8 910 1112 13 250 500 500 250 250 500 250 500 1000 250 500 Product 1 Consists of NumberPart of Units Number Product 2 Consists of: NumberPart Product 3 Consists of Number Part of Units Number 1001 1002 1003 of Units Number 1001 1002 1003 2 1001 1003

Explanation / Answer

Product 1 to be produced =250+250+1000+500+500+250+750+250=3750.

1003 required in product 1= 3750*5=18,750

Product 2 to be produced =500+500+1000+500+250+=2750.

1003 required in product 2= 2750*4=11,000

Product 3 to be produced =250+250+500+500+500+500+500+500=3500.

1003 required in product 1= 3500*3=10,500

Total part of 1003 required=18,750+11,000+10,500=40,250