Question: Product A is made from components B and C. Item B, in turn, is made from D and E. Item C also is an intermediate
Product A is made from components B and C. Item B, in turn, is made from D and E. Item C also is an intermediate item, made from F and H. Finally, intermediate item E is made from H and G. Note that item H has two parents. The following are item lead times:
| Item | A | B | C | D | E | F | G | H |
| Lead Time (weeks) | 1 | 1 | 2 | 2 | 6 | 4 | 4 | 6 |
a. What lead time (in weeks) is needed to respond to a customer order for product A, assuming no existing inventories or scheduled receipts?
____ weeks.
b. What is the customer response time if all purchased items (i.e., D, F, G, and H) are in inventory?
____ weeks.
c. If you are allowed to keep just one purchased item in stock, which one would you choose?
Item B
Item H
Item E
Item C
Item F
Item D
Item G
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