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Make-to-stock product is made of two components

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Reference no: EM131433574

A make-to-stock product (call it product A) is made of two components; one unit of B and two units of C. B is made of two units of D, one unit E, and four units of F. C is made of one unit of D and two units of E. Items C and F have lead times of one week, and items A, B, E, and D have two-week lead times. Lot-for-lot1 sizing is used for items A, D, and E; lots of size 50, 100, and 50 are used for items B, C, and F, respectively. Items A, C, D, and E have on-hand (beginning) inventories of 10, 3, 50, and 20, respectively; all other items have zero beginning inventory. The company is scheduled to receive 20 units of A in Week 1, 30 units of C in Week 1, and 400 units of D in Week 3; there are no other scheduled receipts. Thirty spare units of component E are required in week 4.

a. Explain and illustrate (using MRP records) if an order of 60 units of A could be fulfilled in week 9.

b. Once in week 1, the company’s planner received a message stating that all Schedules Receipts will be delayed by one week. Also, he/she received the information that the demand for week 10 will be 40 units. Explain and illustrate the changes needed.

Reference no: EM131433574

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