Assume that Product z is made of two units of A and four units of B. A is made o

Question

Assume that Product z is made of two units of A and four units of B. A is made of three units of C and four of D. Dis made of two units of E Lead times for purchase or fabrication of each unit to final assembly are: Z takes two weeks: A, B, C, and D take one week each; and E takes three weeks. Fifty eight units of Product z are required in Period 10. (Assume that there is currently no inventory on hand of any of these items.) b. Develop an MRP planning schedule showing gross and not requirements and order release and order receipt dates. (Leave no cells blank - be certain to enter "o" wherever required.) tem Z OH = 0 LT-2 SS - 0 Q-L4L Period Gross requirements Scheduled receipts Projected available balanco Net requirements Planned order receipts Planned order releases term A OH = 0 LT-1 SS = 0 Q=LAL Gross requirements Scheduled receipts Projectled available balance Net requirements Planned order receipts Planned order releases tem B LT-1 SS = 0 Q-L4L Gross requirements Scheduled receipts Projected available balance Not requirements Planned order receipts Planned order releases tem C OHO LT=1 SS - 0 Q=L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item D OH = 0 LT=1 SS = 0 Q=L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item E OH = 0 LT-3 SS-0 Q-LAL Gross requirements Scheduled receipts Projoctod available balanco Net requirements Planned order receipts Planned order releases

Explanation / Answer

MRP Planning schedule for Z, A, B, C, D and E

Explanation:

•Gross requirement of Z is 58 units and lot-for-lot, Planned Order Releases is equal to gross requirement at one period before as LT=1

• Gross requirement for A is equal to planned order release of Z * 2 (at the same week of planned order release of Z) and for L4L, Planned Order Releases is equal to Gross/net requirements of A.

• Gross requirement for B is equal to planned order release of Z * 3 (at the same week of planned order release of Z) and for L4L, Planned Order Releases is equal to Gross/net requirements of B.

• Gross requirement for C is equal to planned order release of A * 3 (at the same week of planned order release of A) and for L4L, Planned Order Releases is equal to Gross/net requirements of C.

• Gross requirement for D is equal to planned order release of A * 4 (at the same week of planned order release of A) and for L4L, Planned Order Releases is equal to Gross/net requirements of D.

• Gross requirement for E is equal to planned order release of D * 2 (at the same week of planned order release of D) and for L4L, Planned Order Releases is equal to Gross/net requirements of E. As LT=3 therefore planned order release will be three period before the Gross/net requirements of E.

Period 1 2 3 4 5 6 7 8 9 10 Item Z Gross Requirements 0 0 0 0 0 0 0 0 0 58 OH= 0 Scheduled Receipts 0 0 0 0 0 0 0 0 0 0 LT = 2 Projected Available Balance 0 0 0 0 0 0 0 0 0 0 SS = 0 Net Requirements 0 0 0 0 0 0 0 0 0 58 Q = L4L Planned Order Receipt 0 0 0 0 0 0 0 0 0 58 Planned Order Release 0 0 0 0 0 0 0 58 0 0 Period 1 2 3 4 5 6 7 8 9 10 Item A Gross Requirements 0 0 0 0 0 0 0 116 0 0 OH= 0 Scheduled Receipts 0 0 0 0 0 0 0 0 0 0 LT = 1 Projected Available Balance 0 0 0 0 0 0 0 0 0 0 SS = 0 Net Requirements 0 0 0 0 0 0 0 116 0 0 Q = L4L Planned Order Receipt 0 0 0 0 0 0 0 116 0 0 Planned Order Release 0 0 0 0 0 0 116 0 0 0 Period 1 2 3 4 5 6 7 8 9 10 Item B Gross Requirements 0 0 0 0 0 0 0 232 0 0 OH= 0 Scheduled Receipts 0 0 0 0 0 0 0 0 0 0 LT = 1 Projected Available Balance 0 0 0 0 0 0 0 0 0 0 SS = 0 Net Requirements 0 0 0 0 0 0 0 232 0 0 Q = L4L Planned Order Receipt 0 0 0 0 0 0 0 232 0 0 Planned Order Release 0 0 0 0 0 0 232 0 0 0 Period 1 2 3 4 5 6 7 8 9 10 Item C Gross Requirements 0 0 0 0 0 0 348 0 0 0 OH= 0 Scheduled Receipts 0 0 0 0 0 0 0 0 0 0 LT = 1 Projected Available Balance 0 0 0 0 0 0 0 0 0 0 SS = 0 Net Requirements 0 0 0 0 0 0 348 0 0 0 Q = L4L Planned Order Receipt 0 0 0 0 0 0 348 0 0 0 Planned Order Release 0 0 0 0 0 348 0 0 0 0 Period 1 2 3 4 5 6 7 8 9 10 Item D Gross Requirements 0 0 0 0 0 0 464 0 0 0 OH= 0 Scheduled Receipts 0 0 0 0 0 0 0 0 0 0 LT = 1 Projected Available Balance 0 0 0 0 0 0 0 0 0 0 SS = 0 Net Requirements 0 0 0 0 0 0 464 0 0 0 Q = L4L Planned Order Receipt 0 0 0 0 0 0 464 0 0 0 Planned Order Release 0 0 0 0 0 464 0 0 0 0 Period 1 2 3 4 5 6 7 8 9 10 Item E Gross Requirements 0 0 0 0 0 928 0 0 0 0 OH= 0 Scheduled Receipts 0 0 0 0 0 0 0 0 0 0 LT = 3 Projected Available Balance 0 0 0 0 0 0 0 0 0 0 SS = 0 Net Requirements 0 0 0 0 0 928 0 0 0 0 Q = L4L Planned Order Receipt 0 0 0 0 0 928 0 0 0 0 Planned Order Release 0 0 928 0 0 0 0 0 0 0

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