Question
A table is assembled using three components, as shown in the accompanying product structure tree. The company that makes the table wants to ship 100
A table is assembled using three components, as shown in the accompanying product structure tree. The company that makes the table wants to ship 100 units at the beginning of day 4, 150 units at the beginning of day 5, and 200 units at the beginning of day 7. Receipts of 100 wood sections are scheduled at the beginning of day 2. There are 120 legs on hand. An additional 10 percent of the order size on legs is added for safety stock. There are 60 braces on hand with no safety stock requirement for braces. Lead times (in days) for all items are shown in the following table. Prepare a material requirements plan using lot-for-lot ordering. (Incorporate the safety stock for the legs by using the following formula: Planned order-receipts = Net Requirements * (1 + Safety Stock %). Round up any fractional values. Then carry the safety stock forward in subsequent on-hand inventory calculations. Leave no cells blank - be certain to enter "0" wherever required.)
Quantity Lead Time
1 - 200 1
201 - 550 2
551 - 999 3
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