Correction change value new order from 50 to new order 100

CHAPTER 14 MATERIAL REQUIREMENTS PLANNING (MRP) AND ERP 593 APPROACH Given the above information, we construct a product structure and "explode" the requirements. SOLUTION This structure has four levels: 0,1,2, and 3 , There are four parents: A, B, C, and F. Each parent item has at least one level below it. Items B, C, D, E, F, and G are components because each item has at least one level above it. In this structure, B, C, and F are both parents and components. The number in parentheses indicates how many units of that particular item are needed to make the item immediately above it. Thus, B(2) means that it takes two units of B for every unit of A, and F(2) means that it takes two units of F for every unit of C. Level Product structure for "Awesome" (A) Once we have developed the product structure, we can determine the number of units of each item required to satisfy demand for a new order of 50 Awesome speaker kits. We "explode" the requirements as shown: PartB:PartC:3numberofAs=PartD:2numberofBs+2numberofFs=PartE:2numberofBs+2numberofCs=PartF:2numberofCs=PartG:1numberofFs=2numberofAs=(3)(50)=(2)(100)+(2)(300)=(2)(100)+(2)(150)=(2)(150)=(1)(300)=(2)(50)=150800500300300100 INSIGHT We now have a visual picture of the Awesome speaker kit requirements and knowledge of the quantities required. Thus, for 50 units of A, we will need 100 units of B,150 units of C,800 units of D, 500 units of E, 300 units of F, and 300 units of G. LEARNING EXERCISE If there are 100Fs in stock, how many Ds do you need? [Answer: 600.] RELATED PROBLEMS 14.1, 14.3a, 14.13a, 14.25a