Objectives

• Test if students truly understand the topic(s) in each unit.
• Be able to apply the theories, techniques, or findings in each unit to solve real life problems.

Instructions

The Unit Exercises are designed to reflect the understanding of key concepts and techniques of POM and evaluate students analytical skills. These exercises are quantitative.

Unit 10 Exercise

1. A standing desk consists of a desk top, four legs, and two adjustment motors. Each leg fastens to the desk top with one fastener set. Each adjustment motor requires two fastener sets for attachment to the legs. Currently there is one order outstanding, to make 180 standing desks. There are 500 legs and 20 desk tops in inventory. There are no other large items in inventory, and no scheduled receipts.

(a) Draw the product structure tree.

(b) Calculate the net requirements to fulfill the outstanding order.

2. The following table shows the bill of material for Product A. The gross requirements for A are 200 units in week 6 and 250 units in week 8. Develop the MRP tables for each item for an 8-week planning period. Use the lot-for-lot lot-sizing rule.

Item	Lead Time	Quantity on Hand	Scheduled receipts
A	1	0
B	2	20	30 in week 2
L	2	0
M	1	20	10 in week 1

3. The following table shows the demand for fans manufactured by Leonards Fan Company. The holding cost for that item is $2 per month and each setup costs $80. Lead time is 0 months. Calculate the planned order releases using: (a) the EOQ technique, and (b) the POQ technique. What are the costs of each plan, including the holding cost of any inventory left over after month 7?

Month	1	2	3	4	5	6	7
Requirement	400	150	200	150	100	150	250