Question

The following table lists the components needed to assemble an end item, lead times (in weeks), and quantities on hand. ts Direct C End rded B(2), 3(3) G(2), B(2) H(4), B(2) 12 21 32 103 a. If 43 units of the end item are to be assembled, how many additional units of B are needed? (Hint You don't need to develop an MRP plan.) 405 0 Additional units b. An order for the end item is scheduled to be shipped at the start of week 17. 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.) The latest week7

Answer 1

a)

Net requirement of L = 2*End item - On hand stock of L = 2*43 - 12 = 74

Net requirement of C = 1*End item - On hand stock of C = 1*43 - 15 = 28

Net requirement of K = 3*End item - On hand stock of K = 3*43 - 21 = 108

Net requirement of B = 2*(Net requirement of L + Net requirement of C + Net requirement of K) - On hand stock of B = 2*(74+28+108) - 32 = 388

b)

Item needs to be shipped in week 17 start.

Lead time of End item is 3 weeks, so L, C and K must be available 3 weeks prior which is 17-3 = Week 14

Lead time of C and K is 4 weeks, so it must start by 14-4 = Week 10

Now, J and G has lead time of 4 weeks, so latest start week = 10-4 = Week 6

Ans Week 6