Question

Product A needs 3 components of B and 2 components of C. Component B on the other hand needs 2 units of component C and E. Component C requires a unit of D, and 3 components of E. Component D on the other hand requires 5 units of E. Lead time is 2 weeks. The company expects to deliver 100 units of A on the 3^rd week, 250 units on the 5^th week, and 500 units on the 8^th week. There is no inventory on hand though there are expected receipts of 100 units of C on the 3^rd week, and 250 units of E on the 2^nd week. Create the product structure with proper level codes and a gross requirements plan.

Answer 1

Low Level Coded (LLC) product structure tree is following:

Low Level Coded (LLC) Product Structure LLC = 0 B (3) LLC = 1 c (2) C (2) LLC = 2 LLC = 3 E (3) E (5) LLC = 4

Lead times of items are needed to compute time-phased material requirements plan.

However, gross requirements plan for each week's requirement is following:

For 100 units of A in 3rd week,

Item	Parent Item	Usage	Gross Requirement
A			100
B	A	3	300
C	A	2	200
C	B	2	600
D	C	1	200
E	B	2	600
E	C	3	600
E	D	5	1000

For 250 units of A in 5th week,

Item	Parent Item	Usage	Gross Requirement
A			250
B	A	3	750
C	A	2	500
C	B	2	1500
D	C	1	500
E	B	2	1500
E	C	3	1500
E	D	5	2500

For 500 units of A in 8th week

Item	Parent Item	Usage	Gross Requirement
A			500
B	A	3	1500
C	A	2	1000
C	B	2	3000
D	C	1	1000
E	B	2	3000
E	C	3	3000
E	D	5	5000