A.

B.

C. The latest week that the components of the order can be started and the order still
be ready to ship on time is week 2. This is because the maximum lead time in each of
the two levels is 3 weeks.
A.

B. I did this based on the highest lead times for each level.

C. ITEM Golf Cart LT=1 week Beg. 1 2 3 4 5 6

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

ITEM Base LT=1 week Beg. 1 2 3 4 5 6

Gross requirements
Scheduled receipts
Projected on-hand 20 20 20 20 20 20 20
Net requirements
Planned-order receipts
Planned-order releases 180

ITEM Motor LT=2 week Beg. 1 2 3 4 5 6

Gross requirements 180
Scheduled receipts
Projected on-hand 300 300 300 300 300 300 300
Net requirements 0
Planned-order receipts 0
Planned-order releases 180

ITEM Seats(2) LT=2 week Beg. 1 2 3 4 5 6

Gross requirements 360
 Scheduled receipts
Projected on-hand 120 120 120 120 120 120 120
Net requirements 240
Planned-order receipts 240
Planned-order releases 240

ITEM Body LT=3 week Beg. 1 2 3 4 5 6

Gross requirements 180
Scheduled receipts
Projected on-hand 50 50 50 50 50 50 50
Net requirements 130
Planned-order receipts 130
Planned-order releases 130

ITEM Frame LT=1 week Beg. 1 2 3 4 5 6

Gross requirements 130
Scheduled receipts
Projected on-hand 35 35 35 35
Net requirements 95
Planned-order receipts 95
Planned-order releases 95

ITEM Controls LT=1 week Beg. 1 2 3 4 5 6

Gross requirements 130
Scheduled receipts
Projected on-hand
Net requirements 130
Planned-order receipts 130
Planned-order releases 130

ITEM Wheels(4) LT=1 week Beg. 1 2 3 4 5 6

Gross requirements 520
Scheduled receipts
Projected on-hand 240 240 240 240
Net requirements 280
Planned-order receipts 280
Planned-order releases 280

ITEM Top LT=1 week Beg. 1 2 3 4 5 6

Gross requirements
Scheduled receipts
Projected on-hand 40 40 40 40 40 40 40
Net requirements
Planned-order receipts
Planned-order releases 160
 ITEM Cover LT=1 week Beg. 1 2 3 4 5 6
Gross requirements 160
Scheduled receipts
Projected on-hand
Net requirements 160
Planned-order receipts 160
Planned-order releases 160

ITEM Supports(4) LT=1 week Beg. 1 2 3 4 5 6

Gross requirements 640
Scheduled receipts
Projected on-hand 200 200 200 200 200 200 200
Net requirements 440
Planned-order receipts 440
Planned-order releases 440
 7 8
200

200
200
200

7 8
200

20
180
180

7 8

7 8
 7 8

7 8

7 8

7 8

7 8
200

40
160
160
7 8

7 8
 Extra
Period When Periods Cumulative
Inventory
Lot Size Part-Periods
Order Is
Carried Carried Part-Periods
Placed × =
2 80 0 1   0  0
3 90 10 2 20 20
4 120 30 3 90 110
6 30 30 1 30 30
8 60 30 3 90 120

Both of these part periods is not close to the EPP but since a lot size of 110 is closer
than 120, we will pick this. So 120 units should be ordered to cover the first 4
periods.
 Demand Cumulative
Month
(units)
1 —
2 80 80
3 10 90
4 30
120
5 —
6 30
7 —
8 30
A. Hours/
Standard Time: unit Capacity FABRICATION A
Product A 2 7

Production Schedule:
Week Mon. Tues. Wed
Quantity 2 4 1
Product A 4 57% 8 114% 2 29%

Hours/
Standard Time: unit Capacity ASSEMBLY A
Product A 1.5 7

Production Schedule:
Week Mon. Tues. Wed
Quantity 2 4 1
Product A 3 43% 6 86% 1.5 21%

Hours/
Standard Time: unit Capacity PACKAGING A
Product A 1 7

Production Schedule:
Week Mon. Tues. Wed
Quantity 2 4 1
Product A 2 29% 4 57% 1 14%

B. It looks like each day is feasible with the exception of Fabrication of Product A
on Tuesday. More can be made on Monday instead.
 Hours/
Standard Time: unit Capacity FABRICATION B
Product A 1 7

Production Schedule:
Week Mon. Tues. Wed
Quantity 3 2 2
Product A 3 43% 2 29% 2 29%

Hours/
Standard Time: unit Capacity ASSEMBLY B
Product A 1 7

Production Schedule:
Week Mon. Tues. Wed
Quantity 3 2 2
Product A 3 43% 2 29% 2 29%

Hours/
Standard Time: unit Capacity PACKAGING B
Product A 1.5 7

Production Schedule:
Week Mon. Tues. Wed
Quantity 3 2 2
Product A 4.5 64% 3 43% 3 43%
 ITEM Tractor Trailer LT=1 week Beg. 1 2 3 4
Gross requirements
Scheduled receipts
Projected on-hand
Net requirements
Planned-order receipts
Planned-order releases

ITEM Trailer Chassis LT=1 week Beg. 1 2 3 4

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

ITEM Tractor Chassis LT=1 week Beg. 1 2 3 4

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

ITEM Wheels(12) Wheels(6) LT=3 week Beg. 1 2 3 4

Gross requirements
Scheduled receipts
Projected on-hand
Net requirements
Planned-order receipts
Planned-order releases 360000

A. The manager should order 364800 wheels because 360000/6400=56.24 rounded up to 57 and then 57*6400=364800.
B. In Week 3
C. He will have 4800(364800-360000) wheels left over.
 5 6 7 8 9
20000

20000
20000
10000 10000

5 6 7 8 9
20000

20000
20000
20000

5 6 7 8 9
20000

20000
20000
20000

5 6 7 8 9
360000

364800

7 and then 57*6400=364800.