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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