illustrates the BOM for product A

illustrates the BOM for product A

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Figure 16.40 illustrates the BOM for product A. The MPS start row in the master production schedule for product A calls for 50 units in week 2, 65 units in week 5, and 80 units in week 8. Item C is produced to make A and to meet the forecasted demand for replacement parts.

Past replace- ment part demand has been 20 units per week (add 20 units to C’s gross requirements). The lead times for items F and C are 1 week, and for the other items the lead time is 2 weeks. No safety stock is required for items B, C, D, E, and F.

The L4L lot-sizing rule is used for items B and F; the POQ lot-sizing rule (P= 3) is used for C. Item E has an FOQ of 600 units, and D has an FOQ of 250 units. On- hand inventories are 50 units of B, 50 units of C, 120 units of D, 70 units of E, and 250 units of F.

Item B has a sched- uled receipt of 50 units in week 2.Develop a material re-quirements plan for the next 8 weeks for items B, C, D, E, and F.