The following table lists the components needed to assemble an end item, lead ti
ID: 431528 • Letter: T
Question
The following table lists the components needed to assemble an end item, lead times, and quantities on hand.
a. If 19 units of the end item are to be assembled, how many additional units of E are needed? (Hint: You don't need to develop an MRP plan to determine this.)
Additional units _____
b. An order for the end item is scheduled to be shipped at the start of week 14. What is the latest week that the order can be started and still be ready to ship on time? (Hint: You don't need to develop an MRP plan for this part either.)
The latest week _____
Explanation / Answer
Ans a)
Number of end items to be assembled = 19
Additional units of B that are required = 19 * 2 - 9 = 29
Additional units of E that are required to produce B = 29 * 2 - 10 = 48
Additional units of C that are required = 19 - 10 = 9
Additional units of E that are required to produce C = 9 * 2 = 18
Additional units of D that are required = 19 * 3 - 24 = 33
Additional units of E that are required to produce D = 33 * 2 = 66
Total units of product E that are required = 48 + 18 + 66 = 132 additional units
Ans b)
Assembly lead time for level 0 end item = 3 weeks
Longest lead time for level 1 items(B,C,D) is for C and D = 3 weeks
Longest lead time for level 2 items(E,F,G,H) is for F and H = 3 weeks
Thus, the latest week that the order can be started and still be ready to ship on time = 14 - (Assembly lead time for level 0 + Longest lead time for level 1 items + Longest lead time for level 2 items)
= 14 - (3 + 3 + 3)
= 14 - 9
= 5
Thus the latest week when parts need to be ordered is the start of week 5.
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