Solved Problem 1

  1. Refer to the bill of materials for product A shown in Figure 11.23.

    A flowchart illustrates the bill of materials for product A, along with the lead time of each component.

    Figure 11.23 BOM for Product A

    If there is no existing inventory and no scheduled receipts, how many units of items G, E, and D must be purchased to produce five units of end item A?

Solution

  1. Five units of item G, 30 units of item E, and 20 units of item D must be purchased to make five units of A. The usage quantities shown in Figure 11.23 indicate that two units of E are needed to make one unit of B and that three units of B are needed to make one unit of A; therefore, five units of A require 30 units of ( 2×3×5=30

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