1. One unit of A is made up of one unit of B and one unit of C. B is made of three units of D and one unit of F. C is composed of three units of B, one unit of D, and four units of E. D is made of one unit of E. Item C had the lead time of one week; Items A,B,E and F have two week lead times; and item D has a lead time of three weeks. Lot-for-lot sizing is used for items C,E,and F. los of size 20,40,and 160 are used for items A,B,and D resepctively. Items A,B,D,and E have on-hand (beginning) inventories of 5,10,100, and 100 respectively; all other items have 0 beginning inventories. We are scheduled to get 10 units of A in Week 3, 20 units of B in Week 7, 40 units of F in Week 5, and 60 units of E in week 2; there are no other scheduled receipts. If 20 units of A are needed in Week 10, use low-level coded bill of materials (product structure tree) to determine the essential planned order releases for all components.

To simplify data handling to include receipt of orders the following six level scheme could be used.

Gross Requirements
Scheduled receipts
projected available balance
net requirements
planned order receipt
planned order release

2. Product A is the end item and is made from two units of B and four of C. B is made of three units of D and two of E. C is made of two units of F and two of E. A has the lead time of one week. B,C, and E have lead times of two weeks, and D and F have lead times of three weeks.

• Demonmstrate the bill of materilas (product structure tree)

• If 100 units of A are needed in Week 10, develop MRP planning schedule, specifying when items are to be ordered and received. There are presently no units of inventory on hand.

3. Sally’s Silk Screning produces specialty T-shirts which are mainly sold at special events. She is trying to decide how many to produce for the upcoming event. During event itself, that lasts one day, Sally could sell T-shirts for $20 a piece. Though, when an event ends, any unsold T-shirts are sold for $4 a piece. It costs Sally $8 to make a special T-shirt. Using Sally’s estimate of demand which follows, how many T-shirts must she produce for upcoming event. Please show calculations.

Demand    Probability
300        .05
400        .10
500        .40
600        .30
700        .10
800        .05