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Final

# Operations Final Summer 2006.doc

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University of Ottawa

Administration

ADM3301

All

Winter

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Problem 1Material Requirements PlanningThe product structure tree of product A is given below The lead times and available inventories of each item are found in the following table ATable 1ItemLead TimeAvailableInventoryE1C2B3A2 weeks200B2 weeks1000C1 D2C1 week1500D3 weeks8500E4 weeks9003aGiven the available inventories how many additional units of E must be ordered if a total of 2000 units of A are required Show your work Hint You do not need to develop an MRP plan also do not specify when the units of E must be ordered we only want the total number of E to orderA 20002001800E 1800900 900Therefore 900 additional units of E are required 6bGiven the available inventories how many additional units of C must be ordered if a total of 2000 units of A are required Show your work Hint You do not need to develop an MRP plan also do not specify when the units of C must be ordered we only want the total number of C to order12A2000200 CCC1500 180036004400150065001 C 2 x 18003600Therefore 6500 additional units of C are requiredB3 x 1800 5400100044002C1 x 4400 44002ATable 1ItemLead TimeAvailableInventoryE1C2B3A2 weeks200B2 weeks1000C1 D2C1 week1500D3 weeks8500E4 weeks9006cTreat the following questions independently show your work for each answer Given the available inventories and assembly lead times what is the maximum amount of product A that could be supplied to customers2inow ie at the beginning of week 1Briefly JustifyAt the beginning of week 1 only the 200 units available in inventory for Product A can be supplied to customers This is because the minimum lead time to produce more of Product A is 2 weeks and thus there is not enough time to produce more at the beginning of week 14iiwithin the next two weeks ie on the beginning of week 3 assuming we are at the beginning of week 1Show your calculationsLead time is 2 weeks for A Max what we have 200 units Min 10003 15002 9001333 units 200333533 units 6dGiven the available inventories and assembly lead times complete the following table

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