Question

Product A is made from components B and C. Item B, in turn, is made from D and E. Item C also is an intermediate item, made from F and H. Finally, intermediate item E is made from H and G. Note that item has two parents. The following are item lead times: Item Lead Time (weeks) A B C G H. 1 1 a. What lead time (in weeks) is needed to respond to a customer order for product A, assuming no existing inventories or scheduled receipts? 14 weeks. (Enter your response as an integer.) b. What is the customer response time if all purchased items (i.e., D, F, G, and H) are in inventory? 10 weeks. (Enter your response as an integer.)

Please give the correct answer and explanation, 10 weeks is incorrect.

Answer 1

The sequence of items from Finished product (A) upto last component in the product structure and the total lead time (LT) are listed below:

A-B-D, Total LT = 1+1+3 = 5

A-B-E-H, Total LT = 1+1+7+4 = 13

A-B-E-G, Total LT = 1+1+7+5 = 14

A-C-F, Total LT = 1+2+5 = 8

A-C-H, Total LT = 1+2+4 = 7

a)

Considering no existing inventory or scheduled receipts, the longest Total LT is 14 weeks. Therefore,

Lead time needed to respond to a customer order for product A = 14 weeks

b)

Considering sufficient inventory of items D,F,G,H , the response time of these items is 0.  

A-B-D, Total LT = 1+1+0 = 2

A-B-E-H, Total LT = 1+1+7+0 = 9

A-B-E-G, Total LT = 1+1+7+0 = 9

A-C-F, Total LT = 1+2+0 = 3

A-C-H, Total LT = 1+2+0 = 3

Therefore, Customer response time = 9 weeks