Construct the bill of materials

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Reference no: EM132259910

Each unit of A is composed of one unit of B, two units of C, and one unit of D. C is composed of two units of D and three units of E. Items A, C, D, and E have on hand inventory of 20, 20, 20, and 10 units, respectively. Item B has a scheduled receipt of 10 units in period 1, and C has a scheduled receipt of 50 units in period 1. Items C and D requires a safety stock of 10 units. Other items have no safety stock requirement. Lot for lot sizing is used for items A and B. Item C requires a minimum lot size of 50 units. D and E are required to be purchased in multiples of 100 and 60, respectively. Lead times are one period for items A, B and C, and two periods for items D and E. The gross requirements for A are 30 in period 5 and 40 in period 8. (a) Construct the bill of materials (product structure tree) (b) Find the planned order releases for all items. (Solution hint: Item C, planned order release is 50 units @ week 6, item E, planned order release is 180 units @ week 4)

Reference no: EM132259910

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