Question

The demand for subassembly S is 110 units in week 7. Each unit of S requires 2 units of T and 1 unit of U. Each unit of T requires 1 unit of V, 1 unit of W, and 1 unit of X. Finally, each unit of U requires 1 unit of Y and 2 units of Z. One firm manufactures all items. It takes 2 weeks to make S, 1 week to make T, 2 weeks to make U, 1 week to make V, 3 weeks to make W, 2 weeks to make X, 2 weeks to make Y, and 1 week to make Z.

Construct a gross material requirements plan.

Answer 1

Answer: Demand for Sub-assembly S = 110 units Time -Week 7

The Gross requirements plan for the same is given in the following table:

Materials	Week 1	Week 2	Week 3	Week 4	Week 5	Week 6	Week 7	Lead time
V. Required date Order release			220	220				1 week
W. Required date Order release	220	220	220	220				3 weeks
X. Required date Order release		220	220	220				2 weeks
Y. Required date Order release	110	110	110					2 weeks
Z. Required date Order release		220	220					1 week
T. Required date Order release				220	220			1 week
U. Required date Order release			110	110	110			2 weeks
S. Required date Order release					110	110	110	2 weeks

Therefore, according to Gross Requirements material plan, 220 units of W and 110 units of Y production are started from day 1 of week 1. 220 units of W are released after 3^rd week and 110 units of Y are released after 2^nd week

In 2^nd week 220 units of X and 220 units of Z production are started. 220 units of X are released after 3^rd week and 220 units of 2 are released after 2^nd week

At 3^rd week – 220 units of Z and 110 units of Y are ready, so production of U which requires 220 units of Z and 110 units of Y is started from 3^rd week. 110 units of U are produced bye end of 4^th week

Also, in 3^rd week – 220 units of production of V is started which are released by end of 3^rd week

In 4^th week, 220 units of T production is started which requires 220 units of V, 220 units of W and 220 units of X. 220 units of T are produced by end of 4^th week

In 5^th week – we have 220 units of T and 110 units of U which are required for production of 110 units of S. S requires lead time of 2 weeks and so by end of 6^th week 110 units of S are produced

In 7^th week – 110 Units of S are made ready