Given the information below, determine the gross & net requirements of the raw materials.
If any of the raw materials result in a positive balance, when does the order need to be placed with the supplier?
Finished Good, Item A – MPS = 30,000 in week 9
BOM – single level
Raw Material Item B (1)
Raw Material Item C (1)
Raw Material Item D (20)
Current Inventories:
Raw Material Item B = 20,000
Raw Material Item C = 10,000
Raw Material Item D = 30,000
On Order (all due in current period):
Item B = 0 on order
Item C = 10,000 on order
Item D = 560,000 on order
Supplier leadtimes = 2 weeks.
No leadtime required upon receipt to release product, meaning, raw materials are available the same week they are received.