Problems 1. [30%] A manufacturing company produces finished products as well as re- placement parts. One particular product has the following bill of materials: B (2) (5) E D (30) (25) (20) The manufacturer independent demand requirements for both the parent item as well as the subassemblies for the next 8 weeks: Independent Period Demand Assembly A Assembly B 25 25 25 Assembly C 15 15 15 1 2 3 4 70 56 7 100 70 25 25 25 25 8 100 25 15 15 15 15 15 Assemblies D and E are purchased from a supplier so they are not manufac- tured by the company, and therefore have no independent demand. Page 1 of 4 The inventory management information for components B, C, D, and E is: Item Category Lot-sizing rule B FOQ FOQ POQ C D E LAL Q=200 Q=500 P=2 Lead Time (weeks) 2 1 2 1 Safety Stock 50 100 10,000 12,000 Scheduled Receipts 200 500 5,000 None week 1 week 1 week 2 Beginning Inventory 175 750 12,350 12,000 Due to large demand, the supplier of item D will only accept orders on weeks 1, 3, 5 and 7. (a) Develop the production schedule for each component in parent item A. Make sure the independent demand for B and C are also included in the schedule. (b) The company is developing a new product that will incorporate sub- assembly C. As part of the development process, a manufacturing test- run will be conducted, requiring an extra 500 subassembly C's per week. What is the earliest week this extra production can be added while still maintaining all inventory requirements? (c) Production problems at a supplier means that orders for item E cannot be filled until after week 3. After week 3, orders will be filled with a lead time of 1 week but will be limited to a maximum of 5000 units. Produc- tion is expected to return to normal after week 8. Suggest a strategy for continuing with production.