A firm makes a basic scissors consisting of three parts: the left side, the right side, and the screw that holds the sides together. At the present time, the firm has the following numbers of parts on hand and on order. The lead times for re order of each part are also shown along with a BOM and a sketch of the scissors.

a. Assume the master schedule calls for 200 scissors to be shipped in week 4 and 500 in week 5; work out a complete materials plan.
b. Suppose the supplier of right-hand sides calls to say that deliveries of the 200 parts on order will be one week late. What effect will this have on the materials plan?
c. If demand for scissors is uncertain and has a standard deviation of 50 units, what would you recommend the firm do to maintain a 95 percent service level for scissors?
d. If the delivery of the scissors parts is unreliable and the standard deviation of delivery lead time is one week for each of the parts, what would you recommend the firm do to maintain its production schedule?

Transcribed Image Text:

Scissors Left side Right side Screw Weeks of Lead TimeReceipts Scheduled Scissors Left side Right side Screw On Hand 100 50 75 300 100 in week 2 200 in week 2 200 in week