A firm that produces wood shutters and bookcases has received two orders for shutters: one for 100 shutters and one for 150 shutters. The 100-unit order is due for delivery at the start of week 4 of the current schedule, and the 150-unit order is due for delivery at the start of week 8. Each shutter consists of two frames and four slatted wood sections. The wood sections are made by the firm, and fabrication takes one week. The frames are ordered, and lead time is two weeks. Assembly of the shutters requires one week.

Determine the size and timing of planned-order releases necessary to meet delivery requirements using Lot-forLot ordering policy.

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Business

Juliet Fuentes

20 July, 12:54

A firm that produces wood shutters and bookcases has received two orders for shutters: one for 100 shutters and one for 150 shutters. The 100-unit order is due for delivery at the start of week 4 of the current schedule, and the 150-unit order is due for delivery at the start of week 8. Each shutter consists of two frames and four slatted wood sections. The wood sections are made by the firm, and fabrication takes one week. The frames are ordered, and lead time is two weeks. Assembly of the shutters requires one week.

Determine the size and timing of planned-order releases necessary to meet delivery requirements using Lot-forLot ordering policy.

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Urijah Fuentes · Answer 1

Since 100 shutters are scheduled to be finished in 3 weeks, you must order the 200 frames immediately so they arrive at the end of 2nd week or beginning of the 3rd week. This way, you can assemble the parts during the 3rd week and have them finished by the beginning of the 4th week when they must be delivered.

The other order, 150 shutters must be finished in 7 weeks, so you can order the 300 frames at the end of the fourth week. This way the frames will be received by the end of the 6th week and the parts assembled during the 7th week.

Lot-for-lot order quantities are carried out for every job order that required them.