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A finished item is made up of four type A parts, two type B parts, and one type C part. Each A is made up of one type E part and two type F parts. One portion of type G and one part of type H go into each E.

Question:

1(a) Develop a product structure tree of the above end item.

1(b) The production lead time for a lot of the considered end item is 2 weeks, and its net requirements over an 8-week planning horizon are estimated as follows:

0, 0, 0, 10, 50, 40, 60, 50

Assuming that the production of the end-item is organized on a lot-for-lot basis, determine the gross requirement for level-1 items that you determined in 1(a) by filling the Table 1 below.

1(c)

The current inventory position of C is 20 units, and there is a scheduled receipt of 50 units at the end of the first week. Compute the net requirements for C over the considered planning horizon using your results from 1(b) by filling the Table 2 below.

Table 1. Week Net requirement of end item Planned order release of end item Gross requirement of A Gross requirement of B Gross requirement of C 1 0 NO 2 0 3 0 4 10 5 50 6 40 7 60 8 50 Table 2. Week Gross requirement Scheduled receipts On-hand inventory Net requirement 0 1 2 3 4 5 6 7 8