Level 0 Tractor-trailer

Level 1 Tractor

Level 2 Wheel Body

assembly

Level 3 Wheels (6) Bracket Wheels (12)

Level Quantity Order

0 Tractor-trailer 20,000 20,000
1 Tractor 20,000
2 Wheel assembly 20,000
2 Body 20,000
3 Wheels 120,000
3 Bracket 20,000
1 Trailor 20,000
2 Wheel assembly 20,000
2 Body 20,000
3 Wheels 240,000
3 Bracket 20,000

Wheels needed =360,000 wheels

Master schedule week number Beg. Inv. 1 2 3

for tractor-trailer Quantity

Tractor-trailer Gross requirements

LT=1 week Scheduled receipts
Projected on hand - - - -
Net requirement
Planned-ordered receipts
Planned-ordered releaseas

Tractor Gross requirements

LT=1 week Scheduled receipts
Projected on hand - - - -
Net requirement
Planned-ordered receipts
Planned-ordered releaseas

Trailer Gross requirements

LT=1 week Scheduled receipts
Projected on hand - - - -
Net requirement
Planned-ordered receipts
Planned-ordered releaseas

Wheel assembly Gross requirements

LT=1 week Scheduled receipts
Projected on hand - - - -
Net requirement
Planned-ordered receipts
Planned-ordered releaseas
week number Beg. Inv. 1 2 3
Wheels Gross requirements
LT=1 week Scheduled receipts
Projected on hand - - - 100,000
Net requirement
Planned-ordered receipts (for production) 100,000
Planned-ordered receipts
Planned-ordered releases (production) 100,000 100,000
Planned-ordered releases 64,000

At week 3rd, we have 100,000+100,000=200,000 (wheels) , it will meet the demand for the first lot
After that, we have 200,000-180,000=20,000 (wheels) on hand
At week 4th, we have 20,000+100,000=120,000 (wheels)
Obviously, we need more: 180,000-120,000=60,000 (wheels) on hand at week 4 to meet the second lot
The number of set to be ordered 9.375
Because 9.375 is not feasible, we round up to 10. So the manager should order 10 sets of wheels
The lead time for delivery is expected to be 2 or 3 weeks so the manager should order 10 sets of wheels at week 2nd
actor-trailer

trailor

Wheel Body
assembly

Bracket

4 5 6 7 8
10,000 10,000

10,000 10,000
 - - - - -
10,000 10,000
10,000 10,000
10,000 10,000

10,000 10,000

- - - - -
10,000 10,000
10,000 10,000
10,000 10,000

10,000 10,000

- - - - -
10,000 10,000
10,000 10,000
10,000 10,000

20,000 20,000

- - - - -
20,000 20,000
20,000 20,000
20,000 20,000
4 5 6 7 8
180,000 180,000

200,000 120,000 4,000 4,000 4,000

60,000
100,000 100,000
64,000
100,000

of wheels at week 2nd