Problem 12-2 The following table lists the components needed to assemble an end

Question

Problem 12-2

The following table lists the components needed to assemble an end item, lead times, and quantities on hand.

a. If 21 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 16. 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            

Item End B C D E F G H LT (wk) 2 2 1 1 1 2 1 2 Amount on hand 0 11 8 26 12 30 7 0 End Item D (3) B (2) E (2) F(3) G (2) E (2) H (4) E (21

Explanation / Answer

A.

Net requirement of End item = gross requirement – on hand inventory = 21 – 0 = 21

To prepare 21 units of end item,

Net requirement of B = gross requirement – on hand inventory = 21*2 – 11 = 31

Net requirement of C = gross requirement – on hand inventory = 21*1 – 8 = 13

Net requirement of D = gross requirement – on hand inventory = 21*3 – 26 = 37

Gross requirement of E = 31 (B)*2 + 13(C) * 2 + 37(D)*2 = 162

So, net requirement of E = gross requirement – on hand inventory = 162 – 12 = 150

So, 150 unit of E will be required.

B

E-B-End = 1+2+2 = 5 weeks

F-B-End = 2+2+2 = 6 weeks

G-C-End = 1+1+2 = 4 weeks

E-C-End = 1+1+2 = 4 weeks

H-D-End = 2+1+2 = 5 weeks

E-D-end = 1+1+2 = 4 weeks

Here, the longest lead time is of 6 weeks associated with F-B-end.

So.

Latest week = 16-6 = start of week of 10

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