
Concept explainers
a)
To develop: A net requirements plan for items.
Introduction:
Net requirements plan:
The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the
a)

Explanation of Solution
Given information:
Product structure:
Period | 8 | 9 | 10 | 11 | 12 |
Gross requirements: A | 100 | 50 | 150 | ||
Gross requirements: H | 100 | 50 |
Inventory and lead time:
Item | A | B | C | D | E | F | G | H | J | K |
Lead time | 1 | 2 | 2 | 1 | 2 | 2 | 1 | 1 | 2 | 2 |
On hand | 0 | 100 | 50 | 50 | 75 | 75 | 75 | 0 | 100 | 100 |
- 1 assembly for each item
Item A:
Week | ||||||||||||
Item A | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 100 | 50 | 150 | |||||||||
Scheduled receipt | ||||||||||||
On hand (0) | 0 | 0 | 0 | |||||||||
Net requirement | 100 | 50 | 150 | |||||||||
Planned order receipt | 100 | 50 | 150 | |||||||||
Planned order release | 100 | 50 | 150 |
Week 8:
The gross requirement is 100 (1 assembly). The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 1 week. Therefore, the planned order release will be 100 in week 7 which will be the planned order receipt in week 8.
Week 10:
The gross requirement is 50 (1 assembly). The on hand inventory is 0. Hence, the net requirement is 50. The lead time is 1 week. Therefore, the planned order release will be 50 in week 9 which will be the planned order receipt in week 10.
Week 12:
The gross requirement is 150 (1 assembly). The on hand inventory is 0. Hence, the net requirement is 150. The lead time is 1 week. Therefore, the planned order release will be 150 in week 11 which will be the planned order receipt in week 12.
Item H:
Week | ||||||||||||
Item H | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 100 | 50 | ||||||||||
Scheduled receipt | ||||||||||||
On hand (0) | 0 | 0 | ||||||||||
Net requirement | 100 | 50 | ||||||||||
Planned order receipt | 100 | 50 | ||||||||||
Planned order release | 100 | 50 |
Week 9:
The gross requirement is 100 (1 assembly). The on hand inventory is 0. Hence, the net requirement is 1000. The lead time is 1 week. Therefore, the planned order release will be 100 in week 8 which will be the planned order receipt in week 10.
Week 11:
The gross requirement is 50 (1 assembly). The on hand inventory is 0. Hence, the net requirement is 50. The lead time is 1 week. Therefore, the planned order release will be 50 in week 9 which will be the planned order receipt in week 11.
Item B:
Week | ||||||||||||
Item B | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 100 | 50 | 150 | |||||||||
Scheduled receipt | ||||||||||||
On hand (100) | 100 | 0 | 0 | |||||||||
Net requirement | 0 | 50 | 150 | |||||||||
Planned order receipt | 50 | 150 | ||||||||||
Planned order release | 50 | 150 |
Week 7:
The gross requirement is 100 (1 assembly) derived from planned order release of A. The on hand inventory is 100. Hence, the net requirement is 0. Therefore, there will be no planned order release.
Week 9:
The gross requirement is 50 (1 assembly) derived from the planned order release of A. The on hand inventory is 0. Hence, the net requirement is 50. The lead time is 2 weeks. Therefore, the planned order release will be 50 in week 7 which will be the planned order receipt in week 9.
Week 11:
The gross requirement is 150 (1 assembly) derived from planned order release of A. The on hand inventory is 0. Hence, the net requirement is 150. The lead time is 2 weeks. Therefore, the planned order release will be 150 in week 9 which will be the planned order receipt in week 11.
Item C:
Week | ||||||||||||
Item C | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 100 | 100 | 50 | 50 | 150 | |||||||
Scheduled receipt | ||||||||||||
On hand (50) | 50 | 0 | 0 | 0 | 0 | |||||||
Net requirement | 50 | 100 | 50 | 50 | 150 | |||||||
Planned order receipt | 50 | 100 | 50 | 50 | 150 | |||||||
Planned order release | 50 | 100 | 50 | 50 | 150 |
Week 7:
The gross requirement is 100 (1 assembly) derived from planned order release of A. The on hand inventory is 50. Hence, the net requirement is 50. The lead time is 2 weeks. Therefore, the planned order release will be 50 in week 5 which will be the planned order receipt in week 7.
Week 8:
The gross requirement is 100 (1 assembly) derived from planned order release of H. The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 2 weeks. Therefore, the planned order release will be 100 in week 6 which will be the planned order receipt in week 8.
Week 9:
The gross requirement is 50 (1 assembly) derived from the planned order release of A. The on hand inventory is 0. Hence, the net requirement is 50. The lead time is 2 weeks. Therefore, the planned order release will be 50 in week 7 which will be the planned order receipt in week 9.
Week 10:
The gross requirement is 50 (1 assembly) derived from planned order release of H. The on hand inventory is 0. Hence, the net requirement is 50. The lead time is 2 weeks. Therefore, the planned order release will be 50 in week 8 which will be the planned order receipt in week 10.
Week 11:
The gross requirement is 150 (1 assembly) derived from planned order release of A. The on hand inventory is 0. Hence, the net requirement is 150. The lead time is 2 weeks. Therefore, the planned order release will be 150 in week 9 which will be the planned order receipt in week 11.
Item J:
Week | ||||||||||||
Item J | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 100 | 50 | ||||||||||
Scheduled receipt | ||||||||||||
On hand (100) | 100 | 0 | ||||||||||
Net requirement | 0 | 50 | ||||||||||
Planned order receipt | 0 | 50 | ||||||||||
Planned order release | 50 |
Week 8:
The gross requirement is 100 (1 assembly) derived from planned order release of H. The on hand inventory is 100. Hence, the net requirement is 0. Therefore, there will be no planned order release.
Week 10:
The gross requirement is 50 (1 assembly) derived from the planned order release of H. The on hand inventory is 0. Hence, the net requirement is 50. The lead time is 2 weeks. Therefore, the planned order release will be 50 in week 8 which will be the planned order receipt in week 10.
Item K:
Week | ||||||||||||
Item K | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 100 | 50 | ||||||||||
Scheduled receipt | ||||||||||||
On hand (100) | 100 | 0 | ||||||||||
Net requirement | 0 | 50 | ||||||||||
Planned order receipt | 50 | |||||||||||
Planned order release | 50 |
Week 8:
The gross requirement is 100 (1 assembly) derived from planned order release of H. The on hand inventory is 100. Hence, the net requirement is 0. Therefore, there will be no planned order release.
Week 10:
The gross requirement is 50 (1 assembly) derived from the planned order release of H. The on hand inventory is 0. Hence, the net requirement is 50. The lead time is 2 weeks. Therefore, the planned order release will be 50 in week 8 which will be the planned order receipt in week 10.
Item D:
Week | ||||||||||||
Item D | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 50 | 150 | ||||||||||
Scheduled receipt | ||||||||||||
On hand (50) | 50 | 0 | ||||||||||
Net requirement | 150 | |||||||||||
Planned order receipt | 150 | |||||||||||
Planned order release | 150 |
Week 7:
The gross requirement is 50 (1 assembly) derived from planned order release of B. The on hand inventory is 500. Hence, the net requirement is 0. Therefore, there will be no planned order release.
Week 9:
The gross requirement is 150 (1 assembly) derived from the planned order release of B. The on hand inventory is 0. Hence, the net requirement is 150. The lead time is 1 week. Therefore, the planned order release will be 150 in week 8 which will be the planned order receipt in week 9.
Item E:
Week | ||||||||||||
Item E | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 50 | 100 | 150 | |||||||||
Scheduled receipt | ||||||||||||
On hand (75) | 75 | 25 | 0 | |||||||||
Net requirement | 0 | 75 | 150 | |||||||||
Planned order receipt | 75 | 150 | ||||||||||
Planned order release | 75 | 150 |
Week 7:
The gross requirement is 50 (1 assembly) derived from planned order release of B. The on hand inventory is 75. Hence, the net requirement is 0. Therefore, there will be no planned order release.
Week 8:
The gross requirement is 100 (1 assembly) derived from the planned order release of J and K. The on hand inventory is 25. Hence, the net requirement is 75. The lead time is 2 weeks. Therefore, the planned order release will be 75 in week 6 which will be the planned order receipt in week 8.
Week 9:
The gross requirement is 150 (1 assembly) derived from planned order release of B. The on hand inventory is 0. Hence, the net requirement is 150. The lead time is 2 weeks. Therefore, the planned order release will be 150 in week 7 which will be the planned order receipt in week 9.
Item F:
Week | ||||||||||||
Item F | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 50 | 100 | 50 | 100 | 150 | |||||||
Scheduled receipt | ||||||||||||
On hand (75) | 75 | 25 | 0 | 0 | 0 | |||||||
Net requirement | 0 | 75 | 50 | 100 | 150 | |||||||
Planned order receipt | 75 | 50 | 100 | 150 | ||||||||
Planned order release | 75 | 50 | 100 | 150 |
Week 5:
The gross requirement is 50 (1 assembly) derived from planned order release of C. The on hand inventory is 75. Hence, the net requirement is 0. Therefore, there will be no planned order release.
Week 6:
The gross requirement is 100 (1 assembly) derived from planned order release of C. The on hand inventory is 25. Hence, the net requirement is 75. The lead time is 2 weeks. Therefore, the planned order release will be 75 in week 4 which will be the planned order receipt in week 6.
Week 7:
The gross requirement is 50 (1 assembly) derived from the planned order release of C. The on hand inventory is 0. Hence, the net requirement is 50. The lead time is 2 weeks. Therefore, the planned order release will be 50 in week 5 which will be the planned order receipt in week 7.
Week 8:
The gross requirement is 100 (1 assembly) derived from planned order release of C and J. The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 2 weeks. Therefore, the planned order release will be 100 in week 6 which will be the planned order receipt in week 8.
Week 9:
The gross requirement is 150 (1 assembly) derived from planned order release of C. The on hand inventory is 0. Hence, the net requirement is 150. The lead time is 2 weeks. Therefore, the planned order release will be 150 in week 7 which will be the planned order receipt in week 9.
Item G:
Week | ||||||||||||
Item G | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 50 | 100 | 50 | 100 | 150 | |||||||
Scheduled receipt | ||||||||||||
On hand (75) | 75 | 25 | 0 | 0 | 0 | |||||||
Net requirement | 0 | 75 | 50 | 100 | 150 | |||||||
Planned order receipt | 75 | 50 | 100 | 150 | ||||||||
Planned order release | 75 | 50 | 100 | 150 |
Week 5:
The gross requirement is 50 (1 assembly) derived from planned order release of C. The on hand inventory is 75. Hence, the net requirement is 0. Therefore, there will be no planned order release.
Week 6:
The gross requirement is 100 (1 assembly) derived from planned order release of C. The on hand inventory is 25. Hence, the net requirement is 75. The lead time is 1 week. Therefore, the planned order release will be 75 in week 5 which will be the planned order receipt in week 6.
Week 7:
The gross requirement is 50 (1 assembly) derived from the planned order release of C. The on hand inventory is 0. Hence, the net requirement is 50. The lead time is 1 week. Therefore, the planned order release will be 50 in week 6 which will be the planned order receipt in week 7.
Week 8:
The gross requirement is 100 (1 assembly) derived from planned order release of C and K. The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 1 week. Therefore, the planned order release will be 100 in week 7 which will be the planned order receipt in week 8.
Week 9:
The gross requirement is 150 (1 assembly) derived from planned order release of C. The on hand inventory is 0. Hence, the net requirement is 150. The lead time is 1 week. Therefore, the planned order release will be 150 in week 8 which will be the planned order receipt in week 9.
b)
To develop: A net requirements plan for all items.
Introduction:
Net requirements plan:
The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.
b)

Explanation of Solution
Given information:
Product structure:
Period | 8 | 9 | 10 | 11 | 12 |
Gross requirements: A | 100 | 50 | 150 | ||
Gross requirements: H | 100 | 50 |
Inventory and lead time:
Item | A | B | C | D | E | F | G | H | J | K |
Lead time | 1 | 2 | 2 | 1 | 2 | 2 | 1 | 1 | 2 | 2 |
On hand | 0 | 100 | 50 | 50 | 75 | 75 | 75 | 0 | 100 | 100 |
- 1 assembly for each item
- 2 assemblies for item B, C and F.
Item A:
Week | ||||||||||||
Item A | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 100 | 50 | 150 | |||||||||
Scheduled receipt | ||||||||||||
On hand (0) | 0 | 0 | 0 | |||||||||
Net requirement | 100 | 50 | 150 | |||||||||
Planned order receipt | 100 | 50 | 150 | |||||||||
Planned order release | 100 | 50 | 150 |
Week 8:
The gross requirement is 100 (1 assembly). The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 1 week. Therefore, the planned order release will be 100 in week 7 which will be the planned order receipt in week 8.
Week 10:
The gross requirement is 50 (1 assembly). The on hand inventory is 0. Hence, the net requirement is 50. The lead time is 1 week. Therefore, the planned order release will be 50 in week 9 which will be the planned order receipt in week 10.
Week 12:
The gross requirement is 150 (1 assembly). The on hand inventory is 0. Hence, the net requirement is 150. The lead time is 1 week. Therefore, the planned order release will be 150 in week 11 which will be the planned order receipt in week 12.
Item H:
Week | ||||||||||||
Item H | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 100 | 50 | ||||||||||
Scheduled receipt | ||||||||||||
On hand (0) | 0 | 0 | ||||||||||
Net requirement | 100 | 50 | ||||||||||
Planned order receipt | 100 | 50 | ||||||||||
Planned order release | 100 | 50 |
Week 9:
The gross requirement is 100 (1 assembly). The on hand inventory is 0. Hence, the net requirement is 1000. The lead time is 1 week. Therefore, the planned order release will be 100 in week 8 which will be the planned order receipt in week 10.
Week 11:
The gross requirement is 50 (1 assembly). The on hand inventory is 0. Hence, the net requirement is 50. The lead time is 1 week. Therefore, the planned order release will be 50 in week 9 which will be the planned order receipt in week 11.
Item B:
Week | ||||||||||||
Item B | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 200 | 100 | 300 | |||||||||
Scheduled receipt | ||||||||||||
On hand (100) | 100 | 0 | 0 | |||||||||
Net requirement | 100 | 100 | 300 | |||||||||
Planned order receipt | 100 | 100 | 300 | |||||||||
Planned order release | 100 | 100 | 300 |
Week 7:
The gross requirement is 200 (2 assembly) derived from planned order release of A. The on hand inventory is 100. Hence, the net requirement is 100. Therefore, the planned order release will be 100 in week 5 which will be the planned order receipt in week 7.
Week 9:
The gross requirement is 100 (2 assembly) derived from the planned order release of A. The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 2 weeks. Therefore, the planned order release will be 100 in week 7 which will be the planned order receipt in week 9.
Week 11:
The gross requirement is 300 (2 assembly) derived from planned order release of A. The on hand inventory is 0. Hence, the net requirement is 300. The lead time is 2 weeks. Therefore, the planned order release will be 300 in week 9 which will be the planned order receipt in week 11.
Item C:
Week | ||||||||||||
Item C | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 200 | 200 | 100 | 100 | 300 | |||||||
Scheduled receipt | ||||||||||||
On hand (50) | 50 | 0 | 0 | 0 | 0 | |||||||
Net requirement | 150 | 200 | 100 | 100 | 300 | |||||||
Planned order receipt | 150 | 200 | 100 | 100 | 300 | |||||||
Planned order release | 150 | 200 | 100 | 100 | 300 |
Week 7:
The gross requirement is 200 (2 assembly) derived from planned order release of A. The on hand inventory is 50. Hence, the net requirement is 150. The lead time is 2 weeks. Therefore, the planned order release will be 150 in week 5 which will be the planned order receipt in week 7.
Week 8:
The gross requirement is 200 (2 assembly) derived from planned order release of H. The on hand inventory is 0. Hence, the net requirement is 200. The lead time is 2 weeks. Therefore, the planned order release will be 200 in week 6 which will be the planned order receipt in week 8.
Week 9:
The gross requirement is 100 (2 assembly) derived from the planned order release of A. The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 2 weeks. Therefore, the planned order release will be 100 in week 7 which will be the planned order receipt in week 9.
Week 10:
The gross requirement is 100 (2 assembly) derived from planned order release of H. The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 2 weeks. Therefore, the planned order release will be 100 in week 8 which will be the planned order receipt in week 10.
Week 11:
The gross requirement is 300 (2 assembly) derived from planned order release of A. The on hand inventory is 0. Hence, the net requirement is 300. The lead time is 2 weeks. Therefore, the planned order release will be 300 in week 9 which will be the planned order receipt in week 11.
Item J:
Week | ||||||||||||
Item J | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 100 | 50 | ||||||||||
Scheduled receipt | ||||||||||||
On hand (100) | 100 | 0 | ||||||||||
Net requirement | 0 | 50 | ||||||||||
Planned order receipt | 0 | 50 | ||||||||||
Planned order release | 50 |
Week 8:
The gross requirement is 100 (1 assembly) derived from planned order release of H. The on hand inventory is 100. Hence, the net requirement is 0. Therefore, there will be no planned order release.
Week 10:
The gross requirement is 50 (1 assembly) derived from the planned order release of H. The on hand inventory is 0. Hence, the net requirement is 50. The lead time is 2 weeks. Therefore, the planned order release will be 50 in week 8 which will be the planned order receipt in week 10.
Item K:
Week | ||||||||||||
Item K | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 100 | 50 | ||||||||||
Scheduled receipt | ||||||||||||
On hand (100) | 100 | 0 | ||||||||||
Net requirement | 0 | 50 | ||||||||||
Planned order receipt | 50 | |||||||||||
Planned order release | 50 |
Week 8:
The gross requirement is 100 (1 assembly) derived from planned order release of H. The on hand inventory is 100. Hence, the net requirement is 0. Therefore, there will be no planned order release.
Week 10:
The gross requirement is 50 (1 assembly) derived from the planned order release of H. The on hand inventory is 0. Hence, the net requirement is 50. The lead time is 2 weeks. Therefore, the planned order release will be 50 in week 8 which will be the planned order receipt in week 10.
Item D:
Week | ||||||||||||
Item D | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 100 | 100 | 300 | |||||||||
Scheduled receipt | ||||||||||||
On hand (50) | 50 | 0 | 0 | |||||||||
Net requirement | 50 | 100 | 300 | |||||||||
Planned order receipt | 50 | 100 | 300 | |||||||||
Planned order release | 50 | 100 | 300 |
Week 6:
The gross requirement is 100 (1 assembly) derived from the planned order release of B. The on hand inventory is 50. Hence, the net requirement is 50. The lead time is 1 week. Therefore, the planned order release will be 50 in week 5 which will be the planned order receipt in week 6.
Week 8:
The gross requirement is 100 (1 assembly) derived from the planned order release of B. The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 1 week. Therefore, the planned order release will be 100 in week 7 which will be the planned order receipt in week 8.
Week 8:
The gross requirement is 300 (1 assembly) derived from the planned order release of B. The on hand inventory is 0. Hence, the net requirement is 300. The lead time is 1 week. Therefore, the planned order release will be 300 in week 9 which will be the planned order receipt in week 10.
Item E:
Week | ||||||||||||
Item E | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 100 | 100 | 100 | 300 | ||||||||
Scheduled receipt | ||||||||||||
On hand (75) | 75 | 0 | 0 | 0 | ||||||||
Net requirement | 25 | 100 | 100 | 300 | ||||||||
Planned order receipt | 25 | 100 | 100 | 300 | ||||||||
Planned order release | 25 | 100 | 100 | 300 |
Week 5:
The gross requirement is 100 (1 assembly) derived from planned order release of B. The on hand inventory is 75. Hence, the net requirement is 25. The lead time is 2 weeks. Therefore, the planned order release will be 25 in week 3 which will be the planned order receipt in week 5.
Week 7:
The gross requirement is 100 (1 assembly) derived from planned order release of B. The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 2 weeks. Therefore, the planned order release will be 100 in week 5 which will be the planned order receipt in week 7.
Week 8:
The gross requirement is 100 (1 assembly) derived from the planned order release of J and K. The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 2 weeks. Therefore, the planned order release will be 100 in week 6 which will be the planned order receipt in week 8.
Week 9:
The gross requirement is 300 (1 assembly) derived from planned order release of B. The on hand inventory is 0. Hence, the net requirement is 300. The lead time is 2 weeks. Therefore, the planned order release will be 300 in week 7 which will be the planned order receipt in week 9.
Item F:
Week | ||||||||||||
Item F | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 300 | 400 | 200 | 300 | 600 | |||||||
Scheduled receipt | ||||||||||||
On hand (75) | 75 | 0 | 0 | 0 | 0 | |||||||
Net requirement | 225 | 400 | 200 | 300 | 600 | |||||||
Planned order receipt | 225 | 400 | 200 | 300 | 600 | |||||||
Planned order release | 225 | 400 | 200 | 300 | 600 |
Week 5:
The gross requirement is 300 (2 assembly) derived from planned order release of C. The on hand inventory is 75. Hence, the net requirement is 225. The lead time is 2 weeks. Therefore, the planned order release will be 225 in week 3 which will be the planned order receipt in week 5.
Week 6:
The gross requirement is 400 (2 assembly) derived from planned order release of C. The on hand inventory is 0. Hence, the net requirement is 400. The lead time is 2 weeks. Therefore, the planned order release will be 400 in week 4 which will be the planned order receipt in week 6.
Week 7:
The gross requirement is 200 (2 assembly) derived from the planned order release of C. The on hand inventory is 0. Hence, the net requirement is 200. The lead time is 2 weeks. Therefore, the planned order release will be 200 in week 5 which will be the planned order receipt in week 7.
Week 8:
The gross requirement is 300 (2 assembly) derived from planned order release of C and J. The on hand inventory is 0. Hence, the net requirement is 300. The lead time is 2 weeks. Therefore, the planned order release will be 300 in week 6 which will be the planned order receipt in week 8.
Week 9:
The gross requirement is 600 (2 assembly) derived from planned order release of C. The on hand inventory is 0. Hence, the net requirement is 600. The lead time is 2 weeks. Therefore, the planned order release will be 600 in week 7 which will be the planned order receipt in week 9.
Item G:
Week | ||||||||||||
Item G | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
Gross requirements | 150 | 200 | 100 | 150 | 300 | |||||||
Scheduled receipt | ||||||||||||
On hand (75) | 75 | 0 | 0 | 0 | 0 | |||||||
Net requirement | 75 | 200 | 100 | 150 | 300 | |||||||
Planned order receipt | 75 | 200 | 100 | 150 | 300 | |||||||
Planned order release | 75 | 200 | 100 | 150 | 300 |
Week 5:
The gross requirement is 150 (1 assembly) derived from planned order release of C. The on hand inventory is 75. Hence, the net requirement is 75. The lead time is 1 week. Therefore, the planned order release will be 75 in week 4 which will be the planned order receipt in week 5.
Week 6:
The gross requirement is 200 (1 assembly) derived from planned order release of C. The on hand inventory is 0. Hence, the net requirement is 200. The lead time is 1 week. Therefore, the planned order release will be 200 in week 5 which will be the planned order receipt in week 6.
Week 7:
The gross requirement is 100 (1 assembly) derived from the planned order release of C. The on hand inventory is 0. Hence, the net requirement is 100. The lead time is 1 week. Therefore, the planned order release will be 100 in week 6 which will be the planned order receipt in week 7.
Week 8:
The gross requirement is 150 (1 assembly) derived from planned order release of C and K. The on hand inventory is 0. Hence, the net requirement is 150. The lead time is 1 week. Therefore, the planned order release will be 150 in week 7 which will be the planned order receipt in week 8.
Week 9:
The gross requirement is 300 (1 assembly) derived from planned order release of C. The on hand inventory is 0. Hence, the net requirement is 300. The lead time is 1 week. Therefore, the planned order release will be 300 in week 8 which will be the planned order receipt in week 9.
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Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
- SIPOC Process Supplier Machines Quality Group Leader Double Output Customers Inputs Solutions End of batch Inspection verification Scrap evaluation Sampling Verification Batch complete Evaluation Completed Quality Group Leader Samplings verified Quality Samplings verified Quality Barcode programed Mechanic Parameters registered Quality Line verified Quality Line Verified Quality Second verification Barcode Parameters Line Inspection Second Line Inspection Lot and Expiration Date Quality Quality Mechanic Mechanic Quality Machines Quality Group Leader Quality Quality Quality Batch Verification Process complete Revision Review Sampling Verification Barcode Scanner Machine Parameters Line Clearance Line Clearance Machine Remove Lot Status Verification Close floor Final MFG Review Final QA Review Close Batch Machine removed Lot verified Floor closed MFG Reviewed Process reviewed Batch closed Mechanic Group Leader Quality Quality Quality Group Leaderarrow_forwardAn assessment of gender leadership and corporate culture.Kindly provide the following, citing it using in-text referencing: • A thorough exploration of gender dynamics and concepts.• Creating a clear plan to address gender bias and promote inclusive leadership.• An examination of female leadership dynamics and their impact on performance. • Comprehensive justification behind the proposal.arrow_forwardAssessment of Strategic Leadership and Global Context Provide the below in detail:· A comprehensive analysis of the current strategy,· Develop a new comprehensive strategic leadership framework that tackles the challenges of leading a global company while balancing global standards and responding to local context and challenges.· Justify a framework by drawing on and applying relevant theories of strategic leadership and global management.· It needs substantial depth and detail.· Conduct a critical evaluation of strategic leadership in a global context.arrow_forward
- Assessing Leadership Ethics and Cross-cultural DiversityProvide the below with in-cite text referencing:- Investigate ethical issues and how they influence diversity and cross-cultural leadership.• Develop an ethical decision-making model that addresses cross-cultural concerns in emerging markets, such as Africa.· Conduct comprehensive analysis and modelling if necessary.- Provide a thorough ethical analysis that considers cross-cultural issues.· Careful evaluation of potential outcomes.- The proposed ethical decision-making technique is both novel and defendable.· Promoting diversity and recognising cross-cultural differences.arrow_forwardNeed help, have no idea where to start and love help upon a paper idea with no AI and soemthing original please.arrow_forwardAbout the Assignment In this course, you learned how a business chooses a positioning strategy in the marketplace and focuses on these areas by evaluating management's use of production types, creating effective productivity, and analyzing the competitiveness of production. Now you will choose a retail organization and propose a positioning marketing strategy that analyzes the organizational management decisions related to any competitiveness of cost, quality, flexibility, speed, innovation, and/or service. Prompt Choose an organization that focuses on one of these areas in the market: competitiveness of cost, quality, flexibility, speed, innovation, and/or service. An example would be choosing ALDI or LIDL. Their cost marketing positioning strategy is providing customers with international goods for a lower price and, in turn, saving business fees by not providing bagging products for free. (This is just an example. Do not use this example for your project.) Use the following steps…arrow_forward
- Can you guys help me with this? Thank you! The project is Terminal 1 at JFK International Airport Here's what need to do: Time Content: What was the estimated time of the project; what was the final time (or the estimated date) of the project; what are the major contributing factors for the disparity? (Please make sure all the information here can be present around 2 minutes) Risk management content: Discuss a major risk management event that affected the project. while researching if any team member finds an interesting risk management event *Include sources that you have the information when go over these 2 parts above.arrow_forwardI only need help with part C. Please and thank you :) ANSWERED: Gracie recorded the following times assembling a watch. Performance rating given is 95%. A) Average time of Gracie for the Operation? (round to three decimal places) ANSWER=0.107 B) normal time for this operation? (round to three decimal places) ANSWER=0.102 C) HELP PLEASE. "For a given personal allowance of 8% the standard time for the operation is how many minutes?" (round your answer to three decimal places)arrow_forwardGracie recorded the following times assembling a watch. Performance rating given is 95%. Average time of Gracie for the Operation? (round to three decimal places) normal time for this operation? (round to three decimal places)arrow_forward
- As stated before, the key advantage of the LLC is its limited liability that’s provided. When it comes to financial problems faced in their business, the LLC helps to cover the owner's personal assets, like his home or savings. Although this sounds amazing it is important to not that this is not always absolute. This being said, it’s very crucial that the owner should properly keep their finances – personal and business- separate. This will ensure that the legal protection is useful. Disadvantageously, the owner will still have to contribute to Social Security and Medicare Self-emplyment tax?arrow_forwardMonczka Trent shipping is the logistics vendor for Handfield Manufacturing in Ohio. Handfield has daily shipments of a power steering pump from its Ohio plant to an auto assembly line in Alabama. The value of the standard shipment is $261,090. Monczka Trent has two options: (1) it's standard two day shipment or (2) a subcontractor who will team drive overnight with an effective delivery of one day. The extra driver costs $190. Handfield's holding cost is 35% annually for this kind of inventory. A) _ is more economical, with a daily holding cost of _?B) What production issues are not included in the data presented?arrow_forwardSasha is a loan processor for a bank. She's been timed performing four work elements. The allowances for tasks such as this are personal, 7%; fatigue. 8%; fatigue, and delay of 2%. The normal time for the complete operation = (round your irresponsive two decimal places) Standard time for this process = (round your response to 2 decimal places)arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,MarketingMarketingISBN:9780357033791Author:Pride, William MPublisher:South Western Educational PublishingPurchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning

