JA manufacturing company produces finished products as well as re- placement parts. One particular product has the following bill of materials: 2. (2) (30) (25) (20) The manufacturer independent demand requirements for both the parent item as well as the subassemblies for the next 8 weeks: Independent Period Demand 3. 4. 6. 8. Assembly A Assembly B Assembly C 70 100 70 100 25 25 25 25 25 25 25 25 15 15 15 15 15 15 15 15 Assemblies D and E are purchased from a supplier so they are not manufac- tured by the company, and therefore have no independent demand. 2.

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JA manufacturing company produces finished products as well as re-
placement parts. One particular product has the following bill of materials:
2.
(4)
D
(30)
(25)
(20)
The manufacturer independent demand requirements for both the parent item
as well as the subassemblies for the next 8 weeks:
Independent
Period
Demand
2
4
6.
Assembly A
Assembly B 25 25 25
15 15 15
70
100
70
100
25 25 25 25
25
Assembly C
15
15
15 15
15
Assemblies D and E are purchased from a supplier so they are not manufac-
tured by the company, and therefore have no independent demand.
CR
Transcribed Image Text:JA manufacturing company produces finished products as well as re- placement parts. One particular product has the following bill of materials: 2. (4) D (30) (25) (20) The manufacturer independent demand requirements for both the parent item as well as the subassemblies for the next 8 weeks: Independent Period Demand 2 4 6. Assembly A Assembly B 25 25 25 15 15 15 70 100 70 100 25 25 25 25 25 Assembly C 15 15 15 15 15 Assemblies D and E are purchased from a supplier so they are not manufac- tured by the company, and therefore have no independent demand. CR
The inventory management information for components B, C, D, and E is:
Item
Category
Lot-sizing rule
B.
FOQ
FOQ
Q=200 Q=500
D
E
POQ
P=2
LAL
Lead Time (weeks)
Safety Stock
Scheduled Receipts
1
1
50
100
10,000 12,000
5,000
200
500
None
week 1 week 1 week 2
Beginning Inventory
175
750
12,350 12,000
Due to large demand, the supplier of item D will only accept orders on weeks
1, 3, 5 and 7.
(a) Develop the production schedule for each component in parent item A.
Make sure the independent demand for B and C are also included in the
schedule.
(b) The company is developing a new product that will incorporate sub-
assembly C. As part of the development process, a manufacturing test-
run will be conducted, requiring an extra 500 subassembly C's per week.
What is the earliest week this extra production can be added while still
maintaining the inventory requirements of all components?
(c) Production problems at a supplier means that orders for item E cannot
be placed until week 4. Starting week 4, orders will be filled with a lead
time of 1 week but will be limited to a maximum of 5000 units. Produc-
tion is expected to return to normal after week 8. Create a production
schedule for Item E to handle this problem and indicate the strategy that
will allow for production of all parent items to continue.
Transcribed Image Text:The inventory management information for components B, C, D, and E is: Item Category Lot-sizing rule B. FOQ FOQ Q=200 Q=500 D E POQ P=2 LAL Lead Time (weeks) Safety Stock Scheduled Receipts 1 1 50 100 10,000 12,000 5,000 200 500 None week 1 week 1 week 2 Beginning Inventory 175 750 12,350 12,000 Due to large demand, the supplier of item D will only accept orders on weeks 1, 3, 5 and 7. (a) Develop the production schedule for each component in parent item A. Make sure the independent demand for B and C are also included in the schedule. (b) The company is developing a new product that will incorporate sub- assembly C. As part of the development process, a manufacturing test- run will be conducted, requiring an extra 500 subassembly C's per week. What is the earliest week this extra production can be added while still maintaining the inventory requirements of all components? (c) Production problems at a supplier means that orders for item E cannot be placed until week 4. Starting week 4, orders will be filled with a lead time of 1 week but will be limited to a maximum of 5000 units. Produc- tion is expected to return to normal after week 8. Create a production schedule for Item E to handle this problem and indicate the strategy that will allow for production of all parent items to continue.
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