Question

The following table lists the components needed to assemble an end item, the manufacturing or purchase lead times (in weeks) for typical lot sizes, amount on hand, and the direct components of each item and, in brackets, the number of each component for each parent.
Item Lead Time Amount on

Hand Direct

Components

End item 1 - 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 -
If 40 units of the end item are to be assembled, how many additional units of B are needed? (You don’t need to develop the MRP tables.)
An order for 40 units of the end item is scheduled to be shipped at the start of week 8. What is the latest week that the components of the order can be started and the order still be ready to ship on time? (You don’t need to develop the MRP tables.)

Answer 1

Answer:

first question:

in order to produce 40 units of the end item you need:

• 40 units of L: only have 10 on hand, so you need to produce 30 more
• 40 units of C: only have 15 on hand, so you need to produce 25 more
• 40 units of K: only have 20 on hand, so you need to produce 20 more

in order to produce L, C and K you need 75 units of B but only have 30 on hand, so you would need to buy 45 units of B.

second question:

• you need 1 week to produce the 40 units of the end unit
• you need 3 weeks to produce L, C and K (C and K both take 3 weeks to produce or acquire)
• you need 3 weeks to produce or acquire B. J. G. H (G is the component that takes longer to produce or acquire out of these 4)
• total production time for 40 units of end item = 7 weeks

since the order is due at the start of the 8th week, you need to start this week.