XYZ Manufacturing produces Product X, which requires 2 units of Component A, bought from an external supplier. XYZ produces Product X on a lot-for-lot basis. The leadtime for the production of Product X is one day if the lot size is 100 or less, and two days if the lot size is larger than 100, and it is only possibly to produce one lot type per day. The current on-hand inventory of X is 150 units, and there are 50 units of X that are currently in production that will be available at the beginning of Day 2. The following table shows the gross requirements for Product X over the next seven days. Day 1 2 3 4 5 6 7
X 110 80 120 70 150 80 80
The current on-hand inventory of Component A is 100 units. XYZ is scheduled to receive 300 units of Component A at the beginning of Day 1. XYZ orders Component A in lot sizes of 300 units. The leadtime for an order of Component A is one day.
Determine the size and timing of the planned order releases for Product X and Component
A over the next seven days