Chapter 14, Problem 3P

a)

Summary Introduction

To design: A product structure with the quantities of each item and the low-level coding.

Introduction:

Product structure:

The product structure is the representation of the given product information as a graphic image. The graphic image will clearly depict the parents and children and the quantities required of each item.

Low-level coding:

It is the lowest position at which a material can appear in a BOM structure. It will represent the sequence through which the items are moved through the plan. The requirement of the preceding level must be determined before the requirement of the next level.

b)

Summary Introduction

To determine: The gross quantities of each component to assemble 50 brackets.

Introduction:

Gross quantity:

The gross quantity is calculated by identifying the required number of intermediate products to develop the final product. It does not take into account of any on-hand stock of any components needed for the product.

c)

Summary Introduction

To determine: The net quantities of each component to assemble 50 brackets.

Introduction:

Net quantity:

The net quantity is calculated by identifying the required number of intermediate products to develop the final product after taking into account of the inventory of existing items.