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One unit of A is made of two units of B, three units of C. and two units of D. B is composed of one unit of E and two units of F.Cis made of two units of Fand one unit of D. E is made of two units of D. Items A, C. D. and F have one-week lead times; B and E have lead times of two weeks. Lot-for-lot (L4L) lot sizing is used for Items A, B. C, and D: lots of size 50 and 220 are used for Items E and F. respectively. Item C has an on-hand (beginning) inventory of 20; D has an on-hand inventory of 50; all other items have zero beginning inventories. We are scheduled to receive 20 units of Item E in Week 2: there are no other scheduled receipts. If 25 units of A are required in Week 8, use the low-level-coded bill-of-materials to find the necessary planned-order relesses for all components. (Leave the cells blank, whenever zero (0) is required.) Perlod: Gross requirements Scheduled receipts Item A OH 0 LT. 1 SS. 0 O LAL Projected available balance Net requirements Planned order receipts Planned order releases Gross requirements hem: B OH:0 LT. 2 SS. 0 Q LAL Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Gross requirements Scheduled receipts tem: C OH 20 LT. 1 Projected available balance Net requirements SS: 0 Q LAL Planned order receipts Planned order releases Gross requirements Scheduled receipts hem E OH: 0 LT. 2 SS: 0 Q. 50 Projected available balance Net requirements Planned order receipts Planned order releases Gross requirements Scheduled receipts em: F OH:0 LT. 1 SS: 0 Q. 220 Projected available balance Net requirements Planned order receipts Planned order releases Gross requirements Scheduled receipts em: D OH: 50 LT. 1 SS: 0 Q LAL Projected available balance Net requirements Planned order receipts Planned order releases

One unit of A is made of two units of B, three units of C. and two units of D. B is composed of one unit of E and two units of F.Cis made of two units of Fand one unit of D. E is made of two units of D. Items A, C. D. and F have one-week lead times; B and E have lead times of two weeks. Lot-for-lot (L4L) lot sizing is used for Items A, B. C, and D: lots of size 50 and 220 are used for Items E and F. respectively. Item C has an on-hand (beginning) inventory of 20; D has an on-hand inventory of 50; all other items have zero beginning inventories. We are scheduled to receive 20 units of Item E in Week 2: there are no other scheduled receipts. If 25 units of A are required in Week 8, use the low-level-coded bill-of-materials to find the necessary planned-order relesses for all components. (Leave the cells blank, whenever zero (0) is required.) Perlod: Gross requirements Scheduled receipts Item A OH 0 LT. 1 SS. 0 O LAL Projected available balance Net requirements Planned order receipts Planned order releases Gross requirements hem: B OH:0 LT. 2 SS. 0 Q LAL Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Gross requirements Scheduled receipts tem: C OH 20 LT. 1 Projected available balance Net requirements SS: 0 Q LAL Planned order receipts Planned order releases Gross requirements Scheduled receipts hem E OH: 0 LT. 2 SS: 0 Q. 50 Projected available balance Net requirements Planned order receipts Planned order releases Gross requirements Scheduled receipts em: F OH:0 LT. 1 SS: 0 Q. 220 Projected available balance Net requirements Planned order receipts Planned order releases Gross requirements Scheduled receipts em: D OH: 50 LT. 1 SS: 0 Q LAL Projected available balance Net requirements Planned order receipts Planned order releases

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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### Bill of Materials Planning Exercise The exercise involves calculating the planned-order releases needed to meet a demand of 25 units of Item A in Week 8. Below is an explanation of the task and the table used to fill out the necessary information. #### Structure Overview - **Item A** is made from: - 2 units of B - 3 units of C - 2 units of D - **Item B** is composed of: - 1 unit of E - 2 units of F - **Item C** is made from: - 2 units of F - 1 unit of D - **Lot-for-lot (L4L)** ordering is used for Items A, B, C, and D. - **Sizes of lots**: - Item E: 50 - Item F: 220 - **Lead times**: - Item B and F: 2 weeks - Items A, C, D, and E: 1 week - **Inventory Data**: - Item C: On-hand inventory of 20 - Item E: On-hand inventory of 50 - Other items start with zero beginning inventory. - **Scheduled Receipts**: - 20 units of Item E in Week 2 #### Table Description The table includes data tracked over 8 weeks for each item (A-F) and consists of rows for: - **Gross Requirements**: The total demand for that particular item each week. - **Scheduled Receipts**: Items that are expected to be received each week based on previous orders. - **Projected Available Balance**: Inventory expected to be available at the end of each week. - **Net Requirements**: Additional items needed after accounting for current inventories and scheduled receipts. - **Planned Order Receipts**: Items planned to be received each week to meet net requirements. - **Planned Order Releases**: The planned order timings to meet future requirements considering lead times. #### Instructions Given the conditions, one needs to calculate the planned-order releases, filling in the table where necessary to ensure 25 units of Item A are available in Week 8. Remember: - Leave cells blank where zero is required. - Consider lead times and inventory levels in your calculations. - Ensure that all dependencies between items are also reflected in your plans.
Transcribed Image Text:### Bill of Materials Planning Exercise The exercise involves calculating the planned-order releases needed to meet a demand of 25 units of Item A in Week 8. Below is an explanation of the task and the table used to fill out the necessary information. #### Structure Overview - **Item A** is made from: - 2 units of B - 3 units of C - 2 units of D - **Item B** is composed of: - 1 unit of E - 2 units of F - **Item C** is made from: - 2 units of F - 1 unit of D - **Lot-for-lot (L4L)** ordering is used for Items A, B, C, and D. - **Sizes of lots**: - Item E: 50 - Item F: 220 - **Lead times**: - Item B and F: 2 weeks - Items A, C, D, and E: 1 week - **Inventory Data**: - Item C: On-hand inventory of 20 - Item E: On-hand inventory of 50 - Other items start with zero beginning inventory. - **Scheduled Receipts**: - 20 units of Item E in Week 2 #### Table Description The table includes data tracked over 8 weeks for each item (A-F) and consists of rows for: - **Gross Requirements**: The total demand for that particular item each week. - **Scheduled Receipts**: Items that are expected to be received each week based on previous orders. - **Projected Available Balance**: Inventory expected to be available at the end of each week. - **Net Requirements**: Additional items needed after accounting for current inventories and scheduled receipts. - **Planned Order Receipts**: Items planned to be received each week to meet net requirements. - **Planned Order Releases**: The planned order timings to meet future requirements considering lead times. #### Instructions Given the conditions, one needs to calculate the planned-order releases, filling in the table where necessary to ensure 25 units of Item A are available in Week 8. Remember: - Leave cells blank where zero is required. - Consider lead times and inventory levels in your calculations. - Ensure that all dependencies between items are also reflected in your plans.
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