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Problem 5 (15 Points)
Below are the transaction records for eight weeks for to items. Item B is a component part of
Item A which is a finished product ready for retail sales. Both items are produced at Work
Center 101.
Item A
Ave. Processing Time/Unit at WC 101 2.1 hours
POQ = 5 weeks
Lead time = 2 weeks
Week
2
3
4
5
6
7
8
Gross requirements
2
24
3
5
1
3
4
50
Scheduled receipts
Projected available balance
28
26
2
13
8
7
4
0
0
Planned order releases
14
50
Component B
POQ - 5 weeks
Ave. Processing Time/Unit at WC 101 .6 hours
Lead time = 4 weeks
Week
2
3
4
5
6
7
8
Gross requirements
14
50
Scheduled receipts
14
Projected available balance
2
2
2
2
2
2
0
0
0
Planned order releases
A. Describe the impact that these items have on the capacity need of Work Center 101
over the eight week period. (10 Points)
B. What is the Low Level Code for Item B? (5 Points)

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