One unit of A is composed of two units of B and three units of C. Each B is comp

Question

One unit of A is composed of two units of B and three units of C. Each B is composed of one unit of F. C is made of one unit of D, one unit of E, and two units of F. Items A, B, C, and D have 10, 60, 60, and 25 units of on-hand inventory, respectively. Items A, B, and C use lot-for-lot (L4L) as their lot-sizing technique, while D, E, and F require multiples of 60, 110, and 90, respectively, to be purchased. B has scheduled receipts of 30 units in Period 1. No other scheduled receipts exist. Lead times are one period for Items A, B, and D, and two periods for Items C, E, and F. Gross requirements for A are 10 units in Period 1, 20 units in Period 2, 60 units in Period 6, and 40 units in Period 8.

Find the planned order releases for all items. (Leave no cells blank - be certain to enter "0" wherever required.)

Period 1 2 3 4 5 6 7 8 Item A
OH = 10
LT = 1
SS = 0
Q = L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item B
OH = 60
LT = 1
SS = 0
Q = L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item C
OH = 60
LT = 2
SS = 0
Q = L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item D
OH = 25
LT = 1
SS = 0
Q = 60 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item E
OH = 0
LT = 2
SS = 0
Q = 110 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item F
OH = 0
LT = 2
SS = 0
Q = 90 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases

Explanation / Answer

2.

3. C

4. D

E

F

Item / week A 1 2 3 4 5 6 7 8 Gross requirements 10 20 0 0 0 60 0 40 Scheduled receipts 0 0 0 0 0 0 0 0 Projected available balance 10 0 0 0 0 0 0 0 Net requirements 0 20 0 0 0 0 0 0 Planned order receipts 0 20 0 0 0 60 0 40 Planned order releases 20 0 0 0 60 0 40 0

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