Question

One unit of Part C is used in item A and item B. Currently, we have 10 As, 20 Bs, and 100 Cs in inventory. We want to ship 60 As and 70 Bs. How many additional Cs do we need to purchase?

Short answer

Answer

Zero units are required.

Step-by-step solution

Product tree

Item-A and B have a one-week lead time for assembly, while item C has a one-week lead time for procurement.

MRP schedule

Let's say the deadline for end-of-week items is in week three. Assemble an MRP scheduleas described in the following:

As indicated below, create a material requirements strategy using good amount ordering:

Available inventory = Initial inventory+ Scheduled receipts+ planned order receipts- Gross requirement

And

Net requirements = Gross requirements- previous weeks- Scheduled receipts

1. Each necessary order should have been issued one week before the neededweek, due to the one-week lead time.

2. Stockpile surplus merchandise and use the same elevated period as before.