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Consider the bill of material for product P and the data given in the following table. The master schedule requirements for P are 70
Consider the bill of material for product P and the data given in the following table. The master schedule requirements for P are 70 units in week 6. Items Q and R are manufactured internally by the firm and use the lot-for-lot lot-sizing rule. Item S is purchased from a local distributor, and has a Fixed Order Quantity of 50 pieces per order. Q(2) R(3) Item - P Lead Time Quantity on Hand 5 15 0 25 1 1 S(3) 122 Scheduled receipts 20 in week 2 15 in week 1 Master Schedule: Item: Lot Size: Item: Lot Size: Gross Requirements Scheduled Receipts Projected on Hand Gross Requirements Scheduled Receipts Projected on Hand Net Requirements Planned Order Receipts Planned Order Releases Item: Lot Size: Gross Requirements Scheduled Receipts Projected on Hand Item Quantity LT= Net Requirements Planned Order Receipts Planned Order Releases Item: Lot Size: Gross Requirements Scheduled Receipts Projected on Hand LT= Net Requirements Planned Order Receipts Planned Order Releases LT= LT= Net Requirements Planned Order Receipts Planned Order Releases Beg Inv Beg Inv Beg Inv Beg Inv 1 1 1 2 2 3 4 3 4 5 Questions: 1) How many R's should be ordered? 5 2) When should the order for R's be released? 3) What will the projected on hand inventory of item Q be in week 4? 4) What will the projected on hand inventory of item S be in week 8? 5 6 6 7 8 78 5 6 7 8 1 2 3 4 5 6 7 8 9 9 10 11 10 11 9 10 11 6 6 10 11 10 11
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