As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, two springs, and four clamps. The base is assembled from one clamp and two housings. Each clamp has one handle and one casting. Each housing has two bearings and one shaft. There is no inventory on hand. a) Design a product structure noting the quantities for each item and show the low-level coding. b) Determine the gross quantities needed of each item if you are to assemble 50 brackets. c) Compute the net quantities needed if there are 25 of the base and 100 of the clamp in stock.

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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As the production planner for Xiangling Hu
Products, Inc., you have been given a bill of material for
a bracket that is made up of a base, two springs, and four
clamps. The base is assembled from one clamp and two
housings. Each clamp has one handle and one casting. Each
housing has two bearings and one shaft. There is no inventory
on hand.

a) Design a product structure noting the quantities for each
item and show the low-level coding.
b) Determine the gross quantities needed of each item if you
are to assemble 50 brackets.
c) Compute the net quantities needed if there are 25 of the
base and 100 of the clamp in stock.

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