The change in the items due to the change in the lead time of item G. 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.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 14, Problem 16P

a)

Summary Introduction

To determine: The change in the items due to the change in the lead time of item G.

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.

a)

Expert Solution

Answer to Problem 16P

The change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 1

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the planned order release will be 8 in week 5 which will be the planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the planned order release will be 10 in week 6 which will be the planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

Hence, the change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

b)

Summary Introduction

To determine: The implications of the production plan because of change in the lead time of item G.

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)

Expert Solution

Answer to Problem 16P

The production plan will be altered such that item F and four units of A will be delayed by 1 week.

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On Hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 2

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the Planned order release will be 8 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

If this week is week 1 of the production plan, the increase in the lead time will make that only 1 assembly of G will be available for F in week 5. Hence, item F and consequently 4 units of item A will be delayed by a time of 1 week.

c)

Summary Introduction

To determine: The options the production manager has to manage these changes.

c)

Expert Solution

Explanation of Solution

Options the production manager has to manage these changes:

The production manager can do the following. They are:

The production manager can inform the customer in advance that the 4 units will be delayed by a time of 1 week.
The production manager can ask the supplier of item G to expedite the production or the delivery.
The production manager can reduce the time take for production of item F or A.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

What is Bitcoin? How important is it to businesses and individuals? How does it cause environmental damage and is that damage worth continued uses of Bitcoin? Read the following articles to help answer these questions: United Nations University. (2023, October 24). UN study reveals the hidden environmental impacts of bitcoin: Carbon is not the only harmful by-product. https://unu.edu/press-release/un-study-reveals-hidden-environmental-impacts-bitcoin-carbon-not-only-harmful-product#:~:text=Bitcoin%2C%20the%20most%20popular%20cryptocurrency,the%20worldwide%20Bitcoin%20mining%20network. Salam, E. (2023, April 26). Bitcoin is terrible for the environment – can it ever go green? The Guardian. https://www.theguardian.com/technology/2023/apr/26/bitcoin-mining-climate-crisis-environmental-impact

419 X .com/courses/1546/assignments/49499?module_item_id=111573 Unlimited Attempts Allowed ✓ Details Directions: Record a video of yourself giving a business presentation. Imagine you are tasked with researching a professional development topic on business communication for 40 coworkers. You are then expected to give a 4 - 5 minute presentation on the topic. Choose any topic related to business communication, such as intercultural communication, effective leadership, professional writing, etc. Research the topic and prepare a 4 - 5 minute presentation that could be given over video conference call (such as Zoom). You may use visual aids if you choose. Upload a video file of your presentation. Provide all needed citations. Requirements: 4-5 minutes long Contains visual and audio Create your own work; do not plagiarize Cite your sources using APA citations Choose a submission type T

acts Container chips (s 150 cussion: Conflict X + e.com/courses/1546/discussion_topics/15722?module_item_id=111559 24 Winter > Discussions > Week 8 Discussion: Conflict 时☆ 26 Replies, 26 Unread Week 8 Discussion: Conflict Write a 200 - 300 word discussion post based on the prompt below. Reply to at least one other student in 50 - 100 words. Can you think of a time when a conflict led to a new opportunity, better understanding, or other positive result? If not, think of a past conflict and imagine a positive outcome. Discuss the impact of this conflict on your workplace relationships, productivity, and innovation. Source: Business Communication for Success. (2015). University of Minnesota Libraries Publishing. Attribution-NonCommerical-ShareAlike. Edit View Insert Format Tools Table 12ptv Paragraph BIUA T2

Answer 2

Question

Chapter 14, Problem 16P

a)

Summary Introduction

To determine: The change in the items due to the change in the lead time of item G.

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.

a)

Expert Solution

Answer to Problem 16P

The change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 1

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the planned order release will be 8 in week 5 which will be the planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the planned order release will be 10 in week 6 which will be the planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

Hence, the change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

b)

Summary Introduction

To determine: The implications of the production plan because of change in the lead time of item G.

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)

Expert Solution

Answer to Problem 16P

The production plan will be altered such that item F and four units of A will be delayed by 1 week.

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On Hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 2

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the Planned order release will be 8 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

If this week is week 1 of the production plan, the increase in the lead time will make that only 1 assembly of G will be available for F in week 5. Hence, item F and consequently 4 units of item A will be delayed by a time of 1 week.

c)

Summary Introduction

To determine: The options the production manager has to manage these changes.

c)

Expert Solution

Explanation of Solution

Options the production manager has to manage these changes:

The production manager can do the following. They are:

The production manager can inform the customer in advance that the 4 units will be delayed by a time of 1 week.
The production manager can ask the supplier of item G to expedite the production or the delivery.
The production manager can reduce the time take for production of item F or A.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 14, Problem 16P

a)

Summary Introduction

To determine: The change in the items due to the change in the lead time of item G.

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.

a)

Expert Solution

Answer to Problem 16P

The change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 1

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the planned order release will be 8 in week 5 which will be the planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the planned order release will be 10 in week 6 which will be the planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

Hence, the change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

b)

Summary Introduction

To determine: The implications of the production plan because of change in the lead time of item G.

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)

Expert Solution

Answer to Problem 16P

The production plan will be altered such that item F and four units of A will be delayed by 1 week.

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On Hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 2

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the Planned order release will be 8 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

If this week is week 1 of the production plan, the increase in the lead time will make that only 1 assembly of G will be available for F in week 5. Hence, item F and consequently 4 units of item A will be delayed by a time of 1 week.

c)

Summary Introduction

To determine: The options the production manager has to manage these changes.

c)

Expert Solution

Explanation of Solution

Options the production manager has to manage these changes:

The production manager can do the following. They are:

The production manager can inform the customer in advance that the 4 units will be delayed by a time of 1 week.
The production manager can ask the supplier of item G to expedite the production or the delivery.
The production manager can reduce the time take for production of item F or A.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 14, Problem 16P

a)

Summary Introduction

To determine: The change in the items due to the change in the lead time of item G.

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.

a)

Expert Solution

Answer to Problem 16P

The change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 1

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the planned order release will be 8 in week 5 which will be the planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the planned order release will be 10 in week 6 which will be the planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

Hence, the change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

b)

Summary Introduction

To determine: The implications of the production plan because of change in the lead time of item G.

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)

Expert Solution

Answer to Problem 16P

The production plan will be altered such that item F and four units of A will be delayed by 1 week.

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On Hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 2

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the Planned order release will be 8 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

If this week is week 1 of the production plan, the increase in the lead time will make that only 1 assembly of G will be available for F in week 5. Hence, item F and consequently 4 units of item A will be delayed by a time of 1 week.

c)

Summary Introduction

To determine: The options the production manager has to manage these changes.

c)

Expert Solution

Explanation of Solution

Options the production manager has to manage these changes:

The production manager can do the following. They are:

The production manager can inform the customer in advance that the 4 units will be delayed by a time of 1 week.
The production manager can ask the supplier of item G to expedite the production or the delivery.
The production manager can reduce the time take for production of item F or A.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 14, Problem 16P

a)

Summary Introduction

To determine: The change in the items due to the change in the lead time of item G.

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.

a)

Expert Solution

Answer to Problem 16P

The change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 1

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the planned order release will be 8 in week 5 which will be the planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the planned order release will be 10 in week 6 which will be the planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

Hence, the change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

b)

Summary Introduction

To determine: The implications of the production plan because of change in the lead time of item G.

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)

Expert Solution

Answer to Problem 16P

The production plan will be altered such that item F and four units of A will be delayed by 1 week.

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On Hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 2

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the Planned order release will be 8 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

If this week is week 1 of the production plan, the increase in the lead time will make that only 1 assembly of G will be available for F in week 5. Hence, item F and consequently 4 units of item A will be delayed by a time of 1 week.

c)

Summary Introduction

To determine: The options the production manager has to manage these changes.

c)

Expert Solution

Explanation of Solution

Options the production manager has to manage these changes:

The production manager can do the following. They are:

The production manager can inform the customer in advance that the 4 units will be delayed by a time of 1 week.
The production manager can ask the supplier of item G to expedite the production or the delivery.
The production manager can reduce the time take for production of item F or A.

Answer 6

Chapter 14, Problem 16P

a)

Summary Introduction

To determine: The change in the items due to the change in the lead time of item G.

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.

a)

Expert Solution

Answer to Problem 16P

The change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 1

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the planned order release will be 8 in week 5 which will be the planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the planned order release will be 10 in week 6 which will be the planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

Hence, the change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

Answer 7

Chapter 14, Problem 16P

a)

Summary Introduction

To determine: The change in the items due to the change in the lead time of item G.

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.

Answer 8

a)

Expert Solution

Answer to Problem 16P

The change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 1

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the planned order release will be 8 in week 5 which will be the planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the planned order release will be 10 in week 6 which will be the planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

Hence, the change will take place only with item G because it has no children. The Lead time of 4 weeks will preempt the Planned order release by 1 one week.

Answer 13

b)

Summary Introduction

To determine: The implications of the production plan because of change in the lead time of item G.

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)

Expert Solution

Answer to Problem 16P

The production plan will be altered such that item F and four units of A will be delayed by 1 week.

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On Hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 2

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the Planned order release will be 8 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

If this week is week 1 of the production plan, the increase in the lead time will make that only 1 assembly of G will be available for F in week 5. Hence, item F and consequently 4 units of item A will be delayed by a time of 1 week.

Answer 14

b)

Summary Introduction

To determine: The implications of the production plan because of change in the lead time of item G.

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.

Answer 15

b)

Expert Solution

Answer to Problem 16P

The production plan will be altered such that item F and four units of A will be delayed by 1 week.

Answer 16

b)

Expert Solution

Answer 17

b)

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Given information:

10 units for service and production department for B and F.
10 units of A at week 8.
Lead time of G has been changed to 4 weeks.

Part	A	B	C	D	E	F	G	H
On Hand	0	2	10	5	4	5	1	10

Product structure:

EBK PRINCIPLES OF OPERATIONS MANAGEMENT, Chapter 14, Problem 16P , additional homework tip 2

Net requirements plan:

Item A:

	Week
Item A	1	2	3	4	5	6	7	8
Gross requirements								10
Scheduled receipt
On-hand (0)								0
Net requirement								10
Planned order receipt								10
Planned order release							10

Week 8:

The gross requirement is 10 (1 assembly). The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 7 which will be the Planned order receipt in week 8.

Item B:

	Week
Item B	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (2)						2	0
Net requirement						8	10
Planned order receipt						8	10
Planned order release					8	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 2. Hence, the Net requirement is 8. The lead time is 1 week. Therefore, the Planned order release will be 8 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item F:

	Week
Item F	1	2	3	4	5	6	7	8
Gross requirements						10	10
Scheduled receipt
On-hand (5)						5	0
Net requirement						5	10
Planned order receipt						5	10
Planned order release					5	10

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Week 7:

The gross requirement is 10 (1 assembly) derived from the Planned order release of A. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 6 which will be the Planned order receipt in week 7.

Item D:

	Week
Item D	1	2	3	4	5	6	7	8
Gross requirements					8	10
Scheduled receipt
On-hand (5)					5	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release				3	10

Week 5:

The gross requirement is 8 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 5. Hence, the Net requirement is 3. The lead time is 1 week. Therefore, the Planned order release will be 3 in week 4 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 1 week. Therefore, the Planned order release will be 10 in week 5 which will be the Planned order receipt in week 6.

Item G (Lead Time = 3):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release		4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 3 weeks. Therefore, the Planned order release will be 4 in week 2 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 3 weeks. Therefore, the Planned order release will be 10 in week 3 which will be the Planned order receipt in week 6.

Item G (Lead Time = 4):

	Week
Item G	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (1)					1	0
Net requirement					4	10
Planned order receipt					4	10
Planned order release	4	10

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 1. Hence, the Net requirement is 4. The lead time is 4 weeks. Therefore, the Planned order release will be 4 in week 1 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 4 weeks. Therefore, the Planned order release will be 10 in week 2 which will be the Planned order receipt in week 6.

Item H:

	Week
Item H	1	2	3	4	5	6	7	8
Gross requirements					5	10
Scheduled receipt
On-hand (10)					10	5
Net requirement						5
Planned order receipt						5
Planned order release					5

Week 5:

The gross requirement is 5 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 10. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 6.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of F. The on-hand inventory is 5. Hence, the Net requirement is 5. The lead time is 1 week. Therefore, the Planned order release will be 5 in week 5 which will be the Planned order receipt in week 6.

Item C:

	Week
Item C	1	2	3	4	5	6	7	8
Gross requirements					13	10
Scheduled receipt
On-hand (10)					10	0
Net requirement					3	10
Planned order receipt					3	10
Planned order release			3	10

Week 5:

The gross requirement is 13 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 10. Hence, the Net requirement is 3. The lead time is 2 weeks. Therefore, the Planned order release will be 3 in week 3 which will be the Planned order receipt in week 5.

Week 6:

The gross requirement is 10 (1 assembly) derived from the Planned order release of B and H. The on-hand inventory is 0. Hence, the Net requirement is 10. The lead time is 2 weeks. Therefore, the Planned order release will be 10 in week 4 which will be the Planned order receipt in week 6.

Item E:

	Week
Item E	1	2	3	4	5	6	7	8
Gross requirements				3	15
Scheduled receipt
On-hand (4)				4	1
Net requirement					14
Planned order receipt					14
Planned order release				14

Week 4:

The gross requirement is 3 (1 assembly) derived from the Planned order release of D. The on-hand inventory is 4. Hence, the Net requirement is 0. Therefore, there will be no Planned order release. The excess inventory will be available in week 5.

Week 5:

The gross requirement is 15 (1 assembly) derived from the Planned order release of H. The on-hand inventory is 1. Hence, the Net requirement is 14. The lead time is 1 week. Therefore, the Planned order release will be 14 in week 4 which will be the Planned order receipt in week 5.

If this week is week 1 of the production plan, the increase in the lead time will make that only 1 assembly of G will be available for F in week 5. Hence, item F and consequently 4 units of item A will be delayed by a time of 1 week.

Answer 20

c)

Summary Introduction

To determine: The options the production manager has to manage these changes.

c)

Expert Solution

Explanation of Solution

Options the production manager has to manage these changes:

The production manager can do the following. They are:

The production manager can inform the customer in advance that the 4 units will be delayed by a time of 1 week.
The production manager can ask the supplier of item G to expedite the production or the delivery.
The production manager can reduce the time take for production of item F or A.

Answer 21

c)

Summary Introduction

To determine: The options the production manager has to manage these changes.

Answer 22

c)

Expert Solution

Explanation of Solution

Options the production manager has to manage these changes:

The production manager can do the following. They are:

The production manager can inform the customer in advance that the 4 units will be delayed by a time of 1 week.
The production manager can ask the supplier of item G to expedite the production or the delivery.
The production manager can reduce the time take for production of item F or A.