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 260

A table is assembled using three components, as shown in the following product structure tree. The company that makes the table wants to ship 260 units at the beginning of day 4, 310 units at the beginning of day 5, and 360 units at the beginning of day 7. Receipts of 260 wood sections are scheduled at the beginning of day 2. There are 300 legs on hand. An additional 20 percent of the order size on legs is added for scrap allowance. There are 60 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) 1360 1 361950 2 9511,800 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 260 310 360

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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