Modify the net material requirements plan


Discuss the below:

Q: The demand for subassembly S is 140 units in week 7. Each unit of S requires 2 units of T and 1 unit of U. Each unit of T requires 1 unit of V, 1 unit of W, and 1 unit of X. Finally, each unit of U requires 1 of Y and 2 units of Z. One firm manufactures all items. It takes 2 weeks to make S, 1week to make T, 2 weeks to make U, 2 weeks to make V, 3 weeks to make W, 1week to make X, 2 weeks to make Y, and1 week to make Z.

Suppose that in addition to 140 units of S, there is also a demand for 20 units of U, which is a component of S. The 20 units of U are needed for maintenance purposes. These units are needed in week 6. Modify the net material requirements plan to reflect this change.

Item

On-Hand Inventory

Item

On-Hand Inventory

S

20

W

30

T

20

X

30

U

30

Y

40

V

20

Z

180

Item


Week

Lead Time



1

2

3

4

5

6

7

(weeks)

S

Gross req







140

2


On hand







20


Net req







120


Order receipt







120


Order release





120



T

Gross req







240

1



On hand







20



Net req







220



Order receipt










Order release




220220





U

Gross req








2


On hand









Net req









Order receipt









Order release








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Microeconomics: Modify the net material requirements plan
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