Problem 12-3 The following table lists the components needed to assemble an end
ID: 347626 • Letter: P
Question
Problem 12-3
The following table lists the components needed to assemble an end item, lead times (in weeks), and quantities on hand.
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.)
Additional units
b. An order for the end item is scheduled to be shipped at the start of week 8. 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 week
on Hand Direct Components End 1 0 L(2), C(1), K(3) L 2 10 B(2), J(3) C 3 15 G(2), B(2) K 3 20 H(4), B(2) B 2 30 J 3 30 G 3 5 H 2 0
Explanation / Answer
a.
Additional units of L needed = Net requirement of End item * usage factor of L per unit of End item - Amount on hand of L = 43*2 - 10 = 76
Additional units of C needed = Net requirement of End item * usage factor of C per unit of End item - Amount on hand of C = 43*1 - 15 = 28
Additional units of K needed = Net requirement of End item * usage factor of K per unit of End item - Amount on hand of K = 43*3 - 20 = 109
Additional units of B needed = Net req of L * 2 + Net req of C * 2 + Net req of K * 2 - Amount on hand of B = 76*2+28*2+109*2-30 = 396
Additional units = 396
b.
The longest lead time in the product structure is 1+3+3 = 7 weeks for branch: End-C-G. Therefore, for end item to be shipped at start of week 8 , the latest week that order must be started is 8-7 = 1st week.
Latest week = 1