5) End item P is composed of three subassemblies: K, L, and W.

K is assembled using 3 Gs and 4 Hs; L is made of 2 Ms and 2 Ns; and

W is made of 3 Zs. On-hand inventories are 20 Ls, 40 Gs, and 200 Hs. Scheduled receipts are 10 Ks at the start of week 3, 30 Ks at the
start of week 6, and 200 Ws at the start of week 3.

One hundred Ps will be shipped at the start of week 6, and another 100 at the start of week 7. Lead times are two weeks for
subassemblies and one week for components G, H, and M. Final assembly of P requires one week. Include an extra 10 percent scrap
allowance in each planned order of G. The minimum order size for H is 200 units. Develop each of the following:

 a. A product structure tree.
 b. An assembly time chart.
 c. A master schedule for P.
 d. A material requirements plan for K, G, and H using lot­for­lot ordering.

A)

K L W

G(3) H(4) M(2) N(2) Z(3)

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 B)
Wk Wk Wk Wk Wk Wk Wk Wk
1 2 3 4 5 6 7 8
P P
K
G
H
K
G
H
L
M
N
L
M
N
W
Z
W
Z

C)

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 P=
Week Number 1 2 3 4 5 6 7 8
Quantity 100 100

Gross requirements 0 0 0 0 0 100 100 0

Scheduled receipts
Projected on hand 0 0 0 0 0 0 0 0
Net requirements 0 0 0 0 0 100 100 0
Planned-order receipts 0 0 0 0 0 100 100 0
Planned-order releases 0 0 0 0 100 100 0 0

K=
10
Gross requirements 0 0 0 0 100 0 0 0
Scheduled receipts 10
Projected on hand 0 0 10 10 10 0 0 0
Net requirements 0 0 0 0 90 70 0 0
Planned-order receipts 0 0 0 0 90 70 0 0
Planned-order releases 0 0 90 70 0 0 0 0

G=
21
Gross requirements 0 0 270 0 0 0 0 0
Scheduled receipts
Projected on hand 40 40 40 0 0 0 0 0
Net requirements 0 0 230 0 0 0 0 0
Planned-order receipts 0 0 253 0 0 0 0 0
25
Planned-order releases 0 3 231 0 0 0 0 0

H=

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 28
Gross requirements 0 0 360 0 0 0 0 0
Scheduled receipts
20 20
Projected on hand 0 0 200 40 0 0 0 0
24
Net requirements 0 0 160 0 0 0 0 0
24
Planned-order receipts 0 0 200 0 0 0 0 0
20
Planned-order releases 0 0 240 0 0 0 0 0

6) A table is assembled using three components, as shown in the accompanying product structure tree.

The company that makes the table wants to ship 100 units at the beginning of day 4, 150 units at the beginning of day 5, and 200 units
at the beginning of day 7. Receipts of 100 wood sections are scheduled at the beginning of day 2. There are 120 legs on hand. An
additional 10 percent of the order size on legs is added for safety stock. There are 60 braces on hand with no safety stock requirement
for 544545braces. Lead times (in days) for all items are shown in the following table. Prepare a material requirements plan using lot-for-
lot ordering.

1 week
Week Number 1 2 3 4 5 6 7 8
Quantity 100 150 200 0

Gross requirements 0 0 0 100 150 0 200 0

Scheduled receipts
Projected on hand 0 0 0 0 0 0 0 0
Net requirements 0 0 0 100 150 0 200 0
Planned-order receipts 0 0 0 100 150 0 200 0

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 Planned-order releases 0 0 100 150 0 200 0 0

2 weeks

Gross requirements 0 0 200 300 0 400 0 0

Scheduled receipts 100
Projected on hand 0 100 100 0 0 0 0 0
Net requirements 0 0 100 300 0 400 0 0
Planned-order receipts 0 0 100 300 0 400 0 0
Planned-order releases 0 400 0 400 0 0 0 0

3 weeks

Gross requirements 0 0 300 450 0 600 0 0

Scheduled receipts
Projected on hand 60 60 60 0 0 0 0 0
Net requirements 0 0 240 450 0 600 0 0
Planned-order receipts 0 0 240 450 0 600 0 0
45
Planned-order releases 240 0 600 0 0 0 0 0

4 weeks

Gross requirements 0 0 400 600 0 800 0 0

Scheduled receipts
12
Projected on hand 120 0 120 0 0 0 0 0
Net requirements 0 0 280 600 0 800 0 0
Planned-order receipts 0 0 308 660 0 880 0 0
Planned-order releases 968 0 880 0 0 0 0 0

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 7) Eighty units of end item X are needed at the beginning of week 6, and another 30 units are needed at the beginning of week 8.
Prepare a material requirements plan for component D. D can only be ordered in whole cases (50 units per case). One case of D is
automatically received every other week, beginning in week 1 (i.e., weeks 1, 3, 5, 7). Also, there are 30 units of B and 20 units of D
now on hand. Lead times for all items are a function of quantity: one week for up to 100 units, two weeks for 101 to 200 units, three
weeks for 201 to 300 units, and four weeks for 301 or more units.

X)

Week Number 1 2 3 4 5 6 7 8
Quantity 0 0 0 80 0 30

Gross requirements 0 0 0 0 0 80 0 30
Scheduled receipts
Projected on hand 0 0 0 0 0 0 0 0
Net requirements 0 0 0 0 0 80 0 30
Planned-order receipts 0 0 0 0 0 80 0 30
Planned-order releases 0 0 0 0 80 0 30 0

B)

Gross requirements 0 0 0 0 160 0 60 0

Scheduled receipts
Projected on hand 30 30 30 30 30 0 0 0
Net requirements 0 0 0 0 130 0 60 0
Planned-order receipts 0 0 0 0 130 0 60 0
Planned-order releases 0 0 0 130 0 60 0 0

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 D)
14
Gross requirements 0 0 0 350 0 90 0 0
Scheduled receipts 50 50 50
Projected on hand 20 70 30 280 0 50 0 0
10
Net requirements 0 0 200 80 0 40 0 0
10
Planned-order receipts 0 0 200 80 0 40 0 0
20
Planned-order releases 0 0 80 0 40 0 0 0

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