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					CHAPTER 6
Solution
2. P301 COMPUTER
   a.

                                                     P301
                                                   Computer




                                                      P                        K
                                V
                                                   Processor                Keyboard
                            Video Unit
                                                     Unit                     Unit




                      M                                                  A
                                                                                             S
                   Memory                      B                    Arithmetic
                                                                                           Switch
                    Board                  Box Casing                 Board
                                                                                          (4 Req.)
                   (3 Req.)                                          (2 Req.)



      C                                                     Z                R
                     S                     X                                               S           Y
  Ram Chip                                                Micro-         Rom Chip
                   Switch                Board                                           Switch      Board
   (4 Req.)                                             Processor         (2 Req.)


b., c.

                                                                                 Quantity Required
                         Item                     Low-Level Code                  for One Unit*
              A - Arithmetic Board                      2                                2
              B - Box Casing                            2                                1
              C - Ram Chip                              3                               12
              K - Keyboard Unit                         1                                1
              M - Memory Board                          2                                3
              P - Processor Unit                        1                                1
              R - ROM Chip                              3                                4
              S - Switch                                3                                9
              V - Video Unit                            1                                1
              X - Board Type X                          3                                3
              Y - Board Type Y                          3                                2




                                                           6-1
        Z - Microprocessor                  3                         2
            *Assuming no inventory for any item

6. MULTI-LEVEL ITEM EXAMPLE


                                            A



                                                          B
                                  C
                                                      (2 Req.)



                                                         C


  Part: A
  Week                                           1         2      3   4     5    6
  Gross Requirements                             5        15     18   8    12   22
  Scheduled Receipts
  Projected Available Balance         21         16        1      3   15    3   1
  Planned Order Release                                   20     20        20
  Q = 20, LT = 1, SS = 0
  Part: B
  Week                                           1         2      3   4     5   6
  Gross Requirements                                      40     40        40
  Scheduled Receipts                             32
  Projected Available Balance         20         52       12     12   12   12   12
  Planned Order Release                          40              40
  Q = 40, LT = 2, SS = 0
  Part: C
  Week                                            1        2      3   4     5   6
  Gross Requirements                             40       20     60        20
  Scheduled Receipts
  Projected Available Balance         70         30       10     10   10   10   10
  Planned Order Release                                   60          20
  Q = LFL, LT = 1, SS =10




                                           6-2
7. TRACI’S TOMAHAWK
                                      Product Structures

                            A                                              F




             G
                            C                D                    G                 H
       (2 required)


     Part A
      Week                                            1       2        3        4        5
      Gross Requirement                               5       3       10       15       15
      Scheduled Receipt                               5
      Projected Available Balance             10     10       7        0        0       0
      Planned Order Release                                   3       15       15
     Lead Time = 1, Q = L4L, SS = 0

     Part F
      Week                                            1       2        3        4       5
      Gross Requirement                              10      20       25       15       5
      Scheduled Receipt                                      15
      Projected Available Balance             15      5       0       0        0        0
      Planned Order Release                          25      15       5
     Lead Time = 2, Q = L4L, SS = 0

     Part G
      Week                                            1       2        3        4       5
      Gross Requirement                              25      21       35       30
      Scheduled Receipt                              20
      Projected Available Balance          30        25      24       29       19       19
      Planned Order Release                          20      40       20
     Lead Time = 1, Q = multiples of 20, SS = 10

     An order for 20 units must be planned for Part G in period 1 so that safety stock is
 maintained in period 3.




                                             6-3
8. Ajax Manufacturing

                             A                                        B




                      X             Y                        G                 H



                                                Y
                                                                      Z
                                             (2 Req.)

  a.
  Part: G
   Period                                       1       2        3        4        5    6    7
   Gross Requirements                           8       8        8        8        8    8    8
   Scheduled Receipts                          10
   Projected Available Balance           0      2       0        0        0        0    0    0
   Planned Order Release                        6       8        8        8        8    8
   Q = LFL, LT = 1, SS = 0
  Part: Y
   Period                                       1        2        3        4        5    6    7
   Gross Requirements                          32       36       36       36       36   36   36
   Scheduled Receipts                          10
   Projected Available Balance          67     45        9        0        0        0   0    0
   Planned Order Release                       27       36       36       36       36
   Q = LFL, LT = 2, SS = 0
  b.
  Part: Y
   Period                                       1        2        3        4        5    6    7
   Gross Requirements                          32       36       36       36       36   36   36
   Scheduled Receipts                          10
   Projected Available Balance          67     45       10       10       10       10   10   10
   Planned Order Release                 1     36       36       36       36       36
   Q = LFL, LT = 2, SS = 10
  There will be a past due order of 1 that must be expedited and then the first order would
  increase to 36. The other option would be to order 37 in period 1 which would resolve the
  safety stock problem in period 3 instead of period 2.




                                             6-4
9. PRODUCT A

                                                             Limit of A's by Item
                   Item     Inventory        Start          a          b          c
                     A         10             10           10         10         10
                     B         40             40           20         40         40
                     C         60             30           30         30         25
                     D         60             60           60         40         60

The table above provides the basis for answering the three parts of the question. There are two
difficulties that students are likely to have with this problem. The first is that you must add the
restriction caused by A itself plus the minimum from B, C, or D. The second is they will forget
that it takes 2 Cs to make an A. The answers are:
a. 30 units of A (10 A’s in inventory + 20 A’s can be built)
b. 40 units of A (10 A’s in inventory + 30 A’s can be built)
c. 37 units of A (10 A’s in inventory + 27 A’s can be built)


13.
Toaster
 Week                                            1          2    3      4      5       6    7    8
 Gross Requirements                             20         20   35     25     35      35   35   35
 Scheduled Receipts                             50
 Projected Available Balance            10      40         20   35     10     25      40   5    20
 Planned Order Release                          50              50     50             50
       Q = 50, LT = 2, SS = 5
Toaster
 Week                                        2      3      4     5      6     7       8     9
 Gross Requirements                         20     35     25    35     35    35      35    40
 Scheduled Receipts                                50
 Projected Available Balance          57* 37       52     27    42      7    22      37    47
 Planned Order Release                             50           50     50    50
       Q = 50, LT = 2, SS = 5
       *57 = 10 (Previous) + 45 (Receipt) + 7 (Adjustment) - 5 (Disbursement)
       **To get the required on-hand inventory at the beginning of week 2 need to release an
   order for 50 at the beginning of week 1.




                                                     6-5

				
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