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Assume that you are the manager of Assembly, Inc. You have just received an orde

ID: 467204 • Letter: A

Question

Assume that you are the manager of Assembly, Inc. You have just received an order for 20 units of an industrial robot, which is to be delivered at the start of week 7 of your schedule. Using the following information, determine how many units of subassembly G to order and the timing of those orders, given that subassembly G must be ordered in multiples of 80 units and all other components are ordered lot-for-lot. Assume that the components are used only for this particular robot.

Order in Units:_________________________


Timing of Orders in Week(s):__________________

Item Lead Time (weeks) On Hand Components Robot 2 10 B, G, C(3) B 1 5 E, F C 1 20 G(2), H E 2 4 - F 3 8 - G 2 15 - H 1 10 -

Explanation / Answer

Item: Robot

LT = 2 WK

Lot Size: L4L

0

1

2

3

4

5

6

7

Gross Req.

20

Projected-on-hand

10

10

10

10

10

10

10

10

Net Requirement

10

Planned order Receipts

10

Planned order releases

10

Item: C

LT = 1 WK

Lot Size: L4L

(3 units of C req. for Robot)

0

1

2

3

4

5

6

7

Gross Req.

30

Projected-on-hand

20

20

20

20

20

20

Net Requirement

10

Planned order Receipts

10

Planned order releases

10

Item: G

LT = 2 WK

Lot Size: 80

(2 units of G req. for C)
(1 unit of G req. for Robot)

0

1

2

3

4

5

6

7

Gross Req.

20

10

Projected-on-hand

15

15

15

15

15

75

65

65

Net Requirement

5

0

Planned order Receipts

80

0

Planned order releases

80

0

0

For Component G:

Order in Units: 80 units


Timing of Orders in Week(s): Week 2

Item: Robot

LT = 2 WK

Lot Size: L4L

0

1

2

3

4

5

6

7

Gross Req.

20

Projected-on-hand

10

10

10

10

10

10

10

10

Net Requirement

10

Planned order Receipts

10

Planned order releases

10

Item: C

LT = 1 WK

Lot Size: L4L

(3 units of C req. for Robot)

0

1

2

3

4

5

6

7

Gross Req.

30

Projected-on-hand

20

20

20

20

20

20

Net Requirement

10

Planned order Receipts

10

Planned order releases

10

Item: G

LT = 2 WK

Lot Size: 80

(2 units of G req. for C)
(1 unit of G req. for Robot)

0

1

2

3

4

5

6

7

Gross Req.

20

10

Projected-on-hand

15

15

15

15

15

75

65

65

Net Requirement

5

0

Planned order Receipts

80

0

Planned order releases

80

0

0