Question: A table is assembled using three components, as shown in the following product structure tree. The company that makes the table wants to ship 140
A table is assembled using three components, as shown in the following product structure tree. The company that makes the table wants to ship 140 units at the beginning of day 4, 200 units at the beginning of day 5, and 260 units at the beginning of day 7. Receipts of 140 wood sections are scheduled at the beginning of day 2. There are 160 legs on hand. An additional 20 percent of the order size on legs is added for scrap allowance. There are 65 braces on hand. Lead time (in days) for all items is a function of each order quantity and is shown below.
| Order Quantity | Lead Time (days) |
| 1260 | 1 |
| 261650 | 2 |
| 6511,250 | 3 |
Prepare the material requirements plan using lot-for-lot ordering. (Do not leave any empty spaces; input a 0 wherever it is required.)
| Production Schedule | ||||||||
| Day | Beg. Inv. | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Quantity | 140 | 200 | 260 | |||||
| Table (*Variable LT) | Beg. Inv. | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Gross requirements | ||||||||
| Scheduled receipts | ||||||||
| Projected on hand | ||||||||
| Net requirements | ||||||||
| Planned-order receipts | ||||||||
| Planned-order releases | ||||||||
| Wood Sections * | Beg. Inv. | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Gross requirements | ||||||||
| Scheduled receipts | ||||||||
| Projected on hand | ||||||||
| Net requirements | ||||||||
| Planned-order receipts | ||||||||
| Planned-order releases | ||||||||
| Braces * | Beg. Inv. | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Gross requirements | ||||||||
| Scheduled receipts | ||||||||
| Projected on hand | ||||||||
| Net requirements | ||||||||
| Planned-order receipts | ||||||||
| Planned-order releases | ||||||||
| Legs * 20% extra safety stock | Beg. Inv. | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Gross requirements | ||||||||
| Scheduled receipts | ||||||||
| Projected on hand | ||||||||
| Net requirements | ||||||||
| Planned-order receipts | ||||||||
| Planned-order releases | ||||||||
* Note that lead time is a function of lot size.
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