2. An electronics company that produces subassemblies for clients has determined the following independent demand requirements for the next 8 weeks: Independent Period Demand 2 | 3 | 4 | 5 | 6 | 7 | 8 Assembly A 700 1300 700 1300 Assembly C 1250 1250 1250 1250 1250 1250 1250 1250 Assembly E 1150 1150 1150 1150 1150 1150 1150 1150 Page 2 of 5 Assemblies C and E are themselves components of assembly A. The bill of materials for the subassemblies is: Assemblies C and E are themselves components of assembly A. The bill of materials for the subassemblies is: (2) (3) (3) (5) (2) These assemblies are building components for many finished electronics prod- ucts, and therefore the company tends to maintain large inventories of sub- assemblies C and E. The inventory management information for components B, C, D, and E is: Category Lot-sizing rule B POQ P=3 Item D E F FOQ FOQ FOQ FOQ Q=15,000 Q=35,000 Q=7,500 Q=10,000 1 Lot-sizing rule POQ FOQ FOQ FOQ FOQ P=3 Q=15,000 Q=35,000 Q=7,500 Q=10,000 Lead Time (weeks) 2 Safety Stock 500 5,000 10,000 2,000 5,000 Scheduled Receipts 3,000 15,000 35,000 7,500 10,000 week 2 Week 1 week 1 week 1 week 1 Beginning Inventory 750 6,750 12,350 6,125 15,000 Page 3 of 5 (a) Develop the production schedule for each component in assembly A. Make sure the independent demand for Cand E are also included in the schedule. (b) A breakdown at a competing company means that the company expects that demand for item E will increase by 1,000 units/week starting in week 6. What changes does the company have to implement to supply this new level of demand? (c) A new client has approached the company. This client wants 1,500 as- sembly B every week (creating an independent demand for assembly B) starting in week 3, but is flexible on that date. When is the earliest pos- sible date (week) that the contract could start (after or on week 3)? It is now at the beginning of week 1. 2. An electronics company that produces subassemblies for clients has determined the following independent demand requirements for the next 8 weeks: Independent Period Demand 2 | 3 | 4 | 5 | 6 | 7 | 8 Assembly A 700 1300 700 1300 Assembly C 1250 1250 1250 1250 1250 1250 1250 1250 Assembly E 1150 1150 1150 1150 1150 1150 1150 1150 Page 2 of 5 Assemblies C and E are themselves components of assembly A. The bill of materials for the subassemblies is: Assemblies C and E are themselves components of assembly A. The bill of materials for the subassemblies is: (2) (3) (3) (5) (2) These assemblies are building components for many finished electronics prod- ucts, and therefore the company tends to maintain large inventories of sub- assemblies C and E. The inventory management information for components B, C, D, and E is: Category Lot-sizing rule B POQ P=3 Item D E F FOQ FOQ FOQ FOQ Q=15,000 Q=35,000 Q=7,500 Q=10,000 1 Lot-sizing rule POQ FOQ FOQ FOQ FOQ P=3 Q=15,000 Q=35,000 Q=7,500 Q=10,000 Lead Time (weeks) 2 Safety Stock 500 5,000 10,000 2,000 5,000 Scheduled Receipts 3,000 15,000 35,000 7,500 10,000 week 2 Week 1 week 1 week 1 week 1 Beginning Inventory 750 6,750 12,350 6,125 15,000 Page 3 of 5 (a) Develop the production schedule for each component in assembly A. Make sure the independent demand for Cand E are also included in the schedule. (b) A breakdown at a competing company means that the company expects that demand for item E will increase by 1,000 units/week starting in week 6. What changes does the company have to implement to supply this new level of demand? (c) A new client has approached the company. This client wants 1,500 as- sembly B every week (creating an independent demand for assembly B) starting in week 3, but is flexible on that date. When is the earliest pos- sible date (week) that the contract could start (after or on week 3)? It is now at the beginning of week 1