The Cure for Insomonia Found!
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Level 3 contains Items E and F. Because E and F are each used in several places, Exhibit 14.17 is presented to identify more clearly the parent item, the number of units required for each parent item, and the week in which it is required. Two units of Item E are used for each Item A. The 1,200-unit planned order release for A in Period 7 becomes the gross requirement for 2,400 units of E in the same period. One unit of E is used in each B, so the planned order release for 400 units of B in Period 7 becomes the gross requirement for 400 units of E in week 7. Item E is also used in Item D at the rate of one per unit. The 1,530-unit planned order release for D in Period 5 becomes the gross requirement for 1,530 units of E in Period 5 and a 1,500-unit planned order release in Period 4 after accounting for the 30 units on hand and the one-week lead time. The 1,200-unit planned order release for D in Period 6 results in gross requirements for 1,200 units of E in Week 6 and a planned order release for 1,200 units in Week 5.
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