Question

As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, two springs, and four clamps. The base is assembled from one clamp and two housings. Each clamp has one handle and one casting. Each housing has two bearings and one shaft. There is no inventory on hand.
a. Design a product structure noting the quantities for each item and show the low-level coding.
b. Determine the gross quantities needed of each item if you are to assemble 50 brackets.
c. Compute the net quantities needed if there are 25 of the base and 100 of the clamp in stock.

Answer 1

Explanation:

Part (a):

Solved part is attached as an image.

Part (b):

Let us first determine the amount required of each item to produce 1 bracket.

From the attached diagram, we can see that to manufacture 1 bracket, quantity of each item needed is,

Base = 1

Spring = 2

Clamp = 1 + 4 = 5

Housing = 2

Handle = (1 * 1) + (4 * 1) = 5

Casting = (1 * 1) + (4 * 1) = 5

Bearing = 2 * 2 = 4

Shaft = 2 * 1 = 2

Hence, for 50 Brackets, quantity of each item required will be,

Base = 1 * 50 = 50

Spring = 2 * 50 = 100

Clamp = 5 * 50 = 250

Housing = 2 * 50 = 100

Handle = 5 * 50 = 250

Casting = 5  * 50 = 250

Bearing = 4 * 50 = 200

Shaft = 2 * 50 = 100

NOTE: The above quantities give exclusive quantities required for each item. In actual practice, we won't have to purchase base, clamp & housing separately as the will be assembled from their components which are already procured.

Part (c):

As 25 bases are already in stock, parts for them will not be needed. I will refer the quantities subtracted due to this by indicating (B). Similarly, quantities subtracted due to clamps will be indicated as (C).

Base = 50 - 25 = 25

Spring = 50

Clamp = 250 - 100 - 25(B) = 125

Housing = 100 - (2*25)(B) = 50

Handle = 1 * 125 = 125

Casting = 1 * 125 = 125

Bearing = 2 * 50 = 100

Shaft = 1 * 50 = 50