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Product A is made from components B and C
Product A is made from components B and C. Item B, in turn, is made from D and E. Item C also is an intermediate item, made from F and H. Finally, intermediate item E is made from H and G. Note the item H has two parents. The following are item lead times: Item A B C D E F G H
LEAD TIME(WEEKS) 1 2 2 6 5 6 4 3 A) What lead time(in weeks) is needed to respond to a customer order for product A, assuming no existing inventories or schedules receipts? b) What is the customer response time if all purchased items( ie.D,F,G and H) are in inventory. c) If you are allowed to keep just one purchased item in stock, which one would you choose?
Expert Solution
Product A is made from components B and C. Item B, in turn, is made from D and E. Item C also is an intermediate item, made from F and H. Finally, intermediate item E is made from H and G. Note the item H has two parents. The following are item lead times:
Item A B C D E F G H
LEAD TIME(WEEKS) 1 2 2 6 5 6 4 3
A) what lead time(in weeks) is needed to respond to a customer order for product A, assuming no existing inventories or schedules receipts?
A (1)
B (2) C (2)
D (6) E (5) F (6) H (3)
G (4) H (3)
It is going to take 12 weeks in lead time to respond to a customer order for product A. We consider from the longest lead time for item A, B, E, and G.
b) What is the customer response time if all purchased items( ie. D,F,G and H) are in inventory.
The new lead time will be 11 weeks from item A, B, E, and H.
c) If you are allowed to keep just one purchased item in stock, which one would you choose?
If I am allowed to keep one purchased item in stock, I would stock item E because the total lead time would be reduced to 9 weeks.
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