Question

What are the Net Requirements for a process where: Parent's Planned Order Release =883 BOM multiplier =4 Safety Stock =18 Prior Period Inventory =34 Prior Period Planned Order Receipts =75 Prior Period Gross Requirements =984 Scheduled Receipts =59 Loss =4.1% (Round your answer to whole units)

Answer 1

The net requirements for the process are 1,137 units.

Step-by-step explanation:

The net requirements can be calculated using the following formula:

Net Requirements = (Prior Period Gross Requirements + Safety Stock + Loss) - (Prior Period Inventory + Prior Period Planned Order Receipts + Scheduled Receipts)

Given the values:

1. Parent's Planned Order Release = 883
2. BOM multiplier = 4
3. Safety Stock = 18
4. Prior Period Inventory = 34
5. Prior Period Planned Order Receipts = 75
6. Prior Period Gross Requirements = 984
7. Scheduled Receipts = 59
8. Loss = 4.1%

Let's substitute these values into the formula:

Net Requirements = (984 + 18 + 883 * 4 * 0.041) - (34 + 75 + 59)

Simplifying the equation:

Net Requirements = 984 + 18 + 144 + 59 - 34 - 75 - 59

Net Requirements = 1,137

Therefore, the net requirements for the process are 1,137 units.