Assume that Product Z is made up of two units of A and four units of B. A is made of three units of
Question: Assume that Product Z is made up of two units of A and four units of B. A is made of three units of C and four units of D. D is made of two units of E. The lead time for Z is two weeks and for E the lead time is three weeks. The lead time for all other units is one week. The demand for Z is 100 units in Week 10 and 200 units in Week 14. The lot size for Z, A and C are Lot-for-Lot (LFL). The lot size for both D and E is 1000+ units. This means that each of these must be ordered in minimum quantities of 1,000 units. The lot size for B is 500+ units. For Z, A, C, and D, there are no units on hand, no safety stock, and no units allocated. Item E has 700 units on hand, with a safety stock of 200 units and no units allocated. Item B has 500 units on hand, 100 units of safety stock and 100 units already allocated. There are 100 units of Item C currently scheduled to arrive in Week 1 and 200 units of item D are scheduled to arrive in Week 1.
a) Prepare the product structure tree.
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b) Develop an MRP schedule showing the gross and net requirements and the planned order receipts and releases for Product Z and each of its components.
Deliverables: Word Document
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