Question: 2. A manufacturing company is producing two end items, A and B. The bill of materials (product structure tree) is as follows: A B ho

2. A manufacturing company is producing two end

2. A manufacturing company is producing two end items, A and B. The bill of materials (product structure tree) is as follows: A B ho D E E F (1) (2) (1) (2) (2) J J K G (1) H (2) H (2) G (2) J (2) (1) (2) (2) (1) (4) Inventory records for the ten items indicate the following: Item A B C D E F G H J K On-hand 30 120 20 240 260 Scheduled 600 500 380 500 (in week) 2 1 1 2 Lead time 2 1 2 1 1 2 1 2 1 (weeks) Lot size L4L L4L L4L L4L Min L4L Mult POQ* L4L Max 300 250 500 * The periodic order quantity for part H allows orders only in even numbered weeks (that is, week 2, 4, 6,...) The master production schedule calls for gross requirements of 110 units of A in week 6 and 130 units in week 8, and for 70 units of B in week 5 and 160 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 (including H). 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 C 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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