The company is developing a new product that will incorporate subassembly C. As part of the development process, a manufacturing testrun 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?
The company is developing a new product that will incorporate subassembly C. As part of the development process, a manufacturing testrun 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?
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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Question
2-The company is developing a new product that will incorporate subassembly
C. As part of the development process, a manufacturing testrun
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?
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
Transcribed Image Text:The inventory management information for components B, C, D, and E is:
Item
Category
Lot-sizing rule
B
C
E
FOQ
FOQ
POQ
P=2
LAL
Q=200 Q=500
Lead Time (weeks)
2
2
1
Safety Stock
Scheduled Receipts
50
100
10,000 12,000
200
500
5,000
None
week I weekl 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.
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