OPERATION MANAGEMENT

Sheet1

Item	Lead Time	On- Hand Inventory	Components	Heather Adams, production manager for a Colorado exercise equipment, needs to schedule an order for 50 UltimatSteppers, which are to be shipped in week 8. Subscripts indicate quantity required for each parent. Assume lot-for-lot ordering. Below is information about the steppers:
Stepper	2	20	A(1),B(3),C(2)
A	1	10	D(1),F(2)
B	2	30	E(1),F(3)
C	3	10	D(2),E(3)
D	1	15
E	2	5
F	2	20
a)	Develop a product structure for Heather						b)	Develop a time-phased structure
										F
												A
											D
									F				Steepper
											B
									E
										D
											C
									E
							week1	week2	week3	week4	week5	week6	week7	week8
c)      Develop a net material requirements plan for F.
	Level: 1
	Parent: Nil
	Item: stepper
	Lead Time: 2
	Quantity: 50
	Lot Size: LOL
	Week Number	1	2	3	4	5	6	7	8
	Gross Requirements								50
	Scheduled Receipts
	On-hand	20	20	20	20	20	20	20	20
	Net Requirements								30
	Planned Order Receipts								30
	Planned Order Releases						30
	Level: 2
	Parent: Stepper
	Item: A
	Lead Time: 1
	Quantity: 30
	Lot Size: LOL
	Week Number	1	2	3	4	5	6	7	8
	Gross Requirements						30
	Scheduled Receipts
	On-hand	10	10	10	10	10	10
	Net Requirements						20
	Planned Order Receipts						20
	Planned Order Releases					20
	Level: 2
	Parent: Stepper
	Item: B
	Lead Time: 2
	Quantity: 90
	Lot Size: LOL
	Week Number	1	2	3	4	5	6	7	8
	Gross Requirements						90
	Scheduled Receipts
	On-hand	30	30	30	30	30	30
	Net Requirements						60
	Planned Order Receipts						60
	Planned Order Releases				60
	Level: 3
	Parent: A,B
	Item: F
	Lead Time: 2
	Quantity: 200
	Lot Size: LOL
	Week Number	1	2	3	4	5	6	7	8
	Gross Requirements				180	20
	Scheduled Receipts
	On-hand	20	20	20	20
	Net Requirements				160	20
	Planned Order Receipts				160	20
	Planned Order Releases		160	20

Stepper

A(1)

F(3)

C(2)

B(3)

D(1)

F(1)

E(1)

E(3)

D(2)

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