Let's carefully analyze and develop the net material requirements plan step-by-step. --- ### Step 1: Understand the demand and structure - **Demand for S in week 7:** 150 units - **Lead time for S:** 2 weeks - **S requires:** 1 unit of T and 1 unit of U per unit of S - **Lead times:** - T: 1 week - U: 2 weeks - **Subcomponents:** - **T** requires: 2 units of V, 2 units of W, 2 units of X - **U** requires: 2 units of Y, 3 units of Z - **Lead times for components:** - V: 2 weeks - W: 3 weeks - X: 1 week - Y: 2 weeks - Z: 1 week --- ### Step 2: Determine the gross requirements for S | Week | Gross Req for S | On Hand | Net Req | Order Receipt | Order Release | |--------|------------------|-----------|-----------|----------------|---------------| | 4 | 150 | 0 | ? | ? | ? | Since the demand for S is 150 units in week 7, and S takes 2 weeks to produce, the **production order for S** needs to be released **2 weeks before week 7**, i.e., in week 5. --- ### Step 3: Calculate net requirements for S - **Week 7:** - Gross requirement: 150 units - On hand inventory at start of week 7: 0 - **Net requirement:** 150 units (since no inventory) - **Order to be released:** 150 units in week 5 --- ### Step 4: Calculate requirements for components T and U Since each S needs 1 T and 1 U per unit: | Week | Gross Req T | Gross Req U | On Hand T | On Hand U | |--------|--------------|--------------|-----------|-----------| | 7 | 150 | 150 | ? | ? | - **T** takes 1 week to produce, needed in week 7, so **order for T** should be released **1 week before week 7**, i.e., in week 6. - **U** takes 2 weeks to produce, needed in week 7, so **order for U** should be released **2 weeks before week 7**, i.e., in week 5. --- ### Step 5: Calculate requirements for subcomponents V, W, X, Y, Z **For T:** - 1 unit of T requires: - 2 V - 2 W - 2 X **For U:** - 1 unit of U requires: - 2 Y - 3 Z --- ### Step 6: Determine gross requirements for T and U | Week | Req T | Req U | |--------|---------|--------| | 7 | 150 | 150 | - **Order releases:** - T: in week 6 (to meet week 7 demand, 1-week lead time) - U: in week 5 (to meet week 7 demand, 2-week lead time) --- ### Step 7: Calculate gross requirements for subcomponents **V, W, X (from T):** - Each T: needs 2 V, 2 W, 2 X - T demand in week 6: 150 units | Component | Requirement per unit of T | Total requirement in week 6 | |--------------|----------------------------|----------------------------| | V | 2 | 150 * 2 = 300 | | W | 2 | 300 | | X | 2 | 300 | **Y, Z (from U):** - Each U: needs 2 Y and 3 Z - U demand in week 5: 150 units | Component | Requirement per unit of U | Total requirement in week 5 | |--------------|----------------------------|------------------------------| | Y | 2 | 150 * 2 = 300 | | Z | 3 | 150 * 3 = 450 | --- ### Step 8: Create a time-phased plan for components, considering lead times **Component lead times:** | Component | Lead Time (weeks) | Order release week | Requirement week | |--------------|-------------------|---------------------|------------------| | V | 2 | week 4 | week 6 | | W | 3 | week 3 | week 6 | | X | 1 | week 6 | week 6 | | Y | 2 | week 3 | week 5 | | Z | 1 | week 6 | week 5 | --- ### Step 9: Calculate net requirements for components Assuming no starting inventory (on hand = 0), net requirements equal gross requirements. --- ### **Final table of net requirements:** | Item | Week 4 | Week 5 | Week 6 | Week 7 | |-------|---------|--------|--------|--------| | **S** | 0 | 0 | 0 | 150 | | **T** | 0 | 0 | 150 | 0 | | **U** | 0 | 150 | 0 | 0 | | **V** | 0 | 0 | 300 | 0 | | **W** | 0 | 0 | 300 | 0 | | **X** | 0 | 0 | 300 | 0 | | **Y** | 0 | 0 | 0 | 300 | | **Z** | 0 | 0 | 0 | 450 | --- ### **Summary of order releases:** | Item | Week to release order | Quantity | |--------|-------------------------|----------| | S | Week 5 | 150 units (to meet week 7 demand) | | T | Week 6 | 150 units (to meet week 7 requirement) | | U | Week 5 | 150 units (to meet week 7 requirement) | | V | Week 4 | 300 units (from T in week 6) | | W | Week 3 | 300 units (from T in week 6) | | X | Week 6 | 300 units (from T in week 6) | | Y | Week 3 | 300 units (from U in week 5) | | Z | Week 6 | 450 units (from U in week 5) | --- ### **Final notes:** - Orders are scheduled considering lead times. - On-hand inventory is assumed to be zero initially. - All net requirements are whole numbers. --- ### **Final answer:** | Item | Week 4 | Week 5 | Week 6 | Week 7 | |-------|---------|--------|--------|--------| | **S** | 0 | 0 | 0 | 150 | | **T** | 0 | 0 | 150 | 0 | | **U** | 0 | 150 | 0 | 0 | | **V** | 0 | 0 | 300 | 0 | | **W** | 0 | 0 | 300 | 0 | | **X** | 0 | 0 | 300 | 0 | | **Y** | 0 | 0 | 0 | 300 | | **Z** | 0 | 0 | 0 | 450 | This completes the step-by-step construction of the material requirements plan.