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DEVELOPING A PRODUCT STRUCTURE AND GROSS REQUIREMENTS

DEVELOPING A PRODUCT STRUCTURE AND GROSS REQUIREMENTS

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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: How many of each part is required to produce to create the 50 Awesome speaker kits? PART Sub Assembly SOLUTION Required Qty/part В А1 2* number of As = 2 50 100 A2 3* number of As = 3 50 150 800 2* number of Bs + 2* number of Fs = 2• number of Bs + 2* number of Cs = 2* number of Cs = 1* number of Fs = D A1 & A2 100 2 300 A1 & A2 100 150 500 F A2 150 300 A2 1 300 300 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. ТАКЕ HОME QUIZ If there are 100 Fs in stock, how many Ds do you need? Show your solution
Transcribed Image Text: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: How many of each part is required to produce to create the 50 Awesome speaker kits? PART Sub Assembly SOLUTION Required Qty/part В А1 2* number of As = 2 50 100 A2 3* number of As = 3 50 150 800 2* number of Bs + 2* number of Fs = 2• number of Bs + 2* number of Cs = 2* number of Cs = 1* number of Fs = D A1 & A2 100 2 300 A1 & A2 100 150 500 F A2 150 300 A2 1 300 300 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. ТАКЕ HОME QUIZ If there are 100 Fs in stock, how many Ds do you need? Show your solution
DEVELOPING A PRODUCT STRUCTURE AND GROSS REQUIREMENTS PROBLEM Speaker Kits, Inc., packages high-fidelity components for mail order. Components for the top-of-thelinespeaker kit, "Awesome" (A), include 2 Bs and 3 Cs. Each B consists of 2 Ds and 2 Es. Each of the Cs has 2 Fs and 2 Es. Each F includes 2 Ds and 1 G.It is an awesome sound system. (Most purchasers require hearing aids within 3 years, and at least onecourt case is pending because of structural damage to a men's dormitory.) As we can see, the demand forB, C, D, E, F, and G is completely dependent on the master production schedule for A-the Awesomespeaker kits. 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) A Subassembly_A1 Subassembly_A2 в (2) C(3) E (2) Е (2) F (2) 2 3 D(2) G(1) D(2)
Transcribed Image Text:DEVELOPING A PRODUCT STRUCTURE AND GROSS REQUIREMENTS PROBLEM Speaker Kits, Inc., packages high-fidelity components for mail order. Components for the top-of-thelinespeaker kit, "Awesome" (A), include 2 Bs and 3 Cs. Each B consists of 2 Ds and 2 Es. Each of the Cs has 2 Fs and 2 Es. Each F includes 2 Ds and 1 G.It is an awesome sound system. (Most purchasers require hearing aids within 3 years, and at least onecourt case is pending because of structural damage to a men's dormitory.) As we can see, the demand forB, C, D, E, F, and G is completely dependent on the master production schedule for A-the Awesomespeaker kits. 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) A Subassembly_A1 Subassembly_A2 в (2) C(3) E (2) Е (2) F (2) 2 3 D(2) G(1) D(2)
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