The product structure of an assembly P is shown in the figure. Estimated demand for end product P is as follows Week 1 2 3 4 5 6 Demand 1000 1000 1000 1000 1200 1200 ignore lead times for assembly and sub-assembly. Production capacity (per week) for component R is the bottleneck operation. Starting with zero inventory, the smallest capacity that will ensure a feasible production plan up to week 6 is
The product structure of an assembly P is shown in the figure. Estimated demand for end product P is as follows Week 1 2 3 4 5 6 Demand 1000 1000 1000 1000 1200 1200 ignore lead times for assembly and sub-assembly. Production capacity (per week) for component R is the bottleneck operation. Starting with zero inventory, the smallest capacity that will ensure a feasible production plan up to week 6 is Correct Answer 2200
Every P requires 2R
Let production be x per period.
| Week | 1 | 2 | 3 | 4 | 5 | 6 |
| Demand | 1000 | 1000 | 1000 | 1000 | 1200 | 1200 |
| Ending Inventory | x - 2000 | 2x - 4000 | 3x - 6000 | 4x - 8000 | 5x - 10400 | 6x - 12800 |
For minimum capacity condition, 6x - 12800 = 0
So, x = 12800/6 = 2133
The nearest of 2133 is 2200.
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Feb 20, 2025