Question: 1. A manufacturing company is producing two end items, A and H. The bill of materials (product structure tree) is as follows: Inventory records for
1. A manufacturing company is producing two end items, A and H. The bill of materials (product structure tree) is as follows: Inventory records for the ten items indicate the following: Item A B C D E F G H J K On-hand 30 30 20 240 260 Scheduled 1250 920 380 500 (in week) Lead time (weeks) Lot size * The periodic order quantity for part H allows orders only in even numbered weeks (2, 4, 6,...) The master production schedule calls for gross requirements of 100 units ofA in week 5 and 120 units in week 8, and for 80 units of B in week 4 and 150 in week 7. a) Ignore the line in the inventory records marked \"Lot size" and assume the lot-sizing rule is L4L for all items. Determine the planned order releases for all items. Are there any action items arising out of the production plan? b) Repeat the exercise in part (a), but now respect the lot-sizing rules given in the inventory records. In addition, assume that item G has a safety stock requirement of 10 units (that is, you are not allowed to reduce the inventory levels below 10), and that subassembly B is a replacement item that has external demand of 10 units per week. Determine the planned order releases for all items. Are there any action items arising out of the production plan? Do you foresee any problems with this plan
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