One unit of A is made of three units of B, one unit of C, and two units of D. B

Question

One unit of A is made of three units of B, one unit of C, and two units of D. B is composed of two units of E and one unit of D. C is made of one unit of B and two units of E. E is made of one unit of F.

     Items B, C, E, and F have one-week lead times; A and D have lead times of two weeks.

     Assume that lot-for-lot (L4L) lot sizing is used for Items A, B, and F; lots of size 45, 45, and 175 are used for Items C, D, and E, respectively. Items C, E, and F have on-hand (beginning) inventories of 10, 50, and 140, respectively; all other items have zero beginning inventory. We are scheduled to receive 12 units of A in Week 2, 40 units of E in Week 1, and also 50 units of F in Week 1. There are no other scheduled receipts. If 30 units of A are required in Week 8, use the low-level-coded bill of materials to find the necessary planned order releases for all components.

Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates. (Leave no cells blank - be certain to enter "0" wherever required.)

Explanation / Answer

Unit A - 3B + C + 2D Unit B - 2E + D Unit C - B + 2E Unit E - F Projected On Hand Calculation = Last Period Closing + Scheduled Receipt + Planned Receipt - Gross Requirement Net Requirement = Last Period Closing + Scheduled Receipt - Gross Requirement (If the above calculation results in negative amount, then such amount is taken as Net Requirement, else 0) Planned Receipt = If Net Requirement > 0, Planned Receipt as per Lot Size Planned Order Release = If Planned Receipt >0, Order as per Lead Time to be placed Item = A Q = L4L SS = 0 LT : 2 weeks Period 0 1 2 3 4 5 6 7 8 Gross Requirement 0 0 0 0 0 0 0 30 Scheduled Receipts 0 12 0 0 0 0 0 0 Projected On Hand 0 0 12 12 12 12 12 12 0 Net Requirements 0 0 0 0 0 0 0 18 Planned Receipts 0 0 0 0 0 0 0 18 Planned Order Release 0 0 0 0 0 18 0 0 Unit C is required when order for A is released Item = C Q = 45 SS = 0 LT : 1 week Period 0 1 2 3 4 5 6 7 8 Gross Requirement 0 0 0 0 0 18 0 0 Scheduled Receipts 0 0 0 0 0 0 0 0 Projected On Hand 10 10 10 10 10 10 37 37 37 Net Requirements 0 0 0 0 0 8 0 0 Planned Receipts 0 0 0 0 0 45 0 0 Planned Order Release 0 0 0 0 45 0 0 0 3 Units of B are required when order for A is released. 1 Units of C is required when order for C is released. Item = B Q = L4L SS = 0 LT : 1 week Period 0 1 2 3 4 5 6 7 8 Gross Requirement 0 0 0 0 45 54 0 0 Scheduled Receipts 0 0 0 0 0 0 0 0 Projected On Hand 0 0 0 0 0 0 0 0 0 Net Requirements 0 0 0 0 45 54 0 0 Planned Receipts 0 0 0 0 45 54 0 0 Planned Order Release 0 0 0 45 54 0 0 0 1 Unit of D is required when order for B is released. 2 Units of D are required when order for A is released. Item = D Q = 45 SS = 0 LT : 2 week Period 0 1 2 3 4 5 6 7 8 Gross Requirement 0 0 0 45 54 36 0 0 Scheduled Receipts 0 0 0 0 0 0 0 0 Projected On Hand 0 0 0 0 0 36 0 0 0 Net Requirements 0 0 0 45 54 0 0 0 Planned Receipts 0 0 0 45 90 0 0 0 Planned Order Release 0 45 90 0 0 0 0 0 2 Units of E are required when order for B is released. 2 Units of E are required when order for C is released. Item = E Q = 175 SS = 0 LT : 1 week Period 0 1 2 3 4 5 6 7 8 Gross Requirement 0 0 0 90 208 0 0 0 Scheduled Receipts 0 40 0 0 0 0 0 0 Projected On Hand 50 50 90 90 0 142 142 142 142 Net Requirements 0 0 0 0 208 0 0 0 Planned Receipts 0 0 0 0 350 0 0 0 Planned Order Release 0 0 0 350 0 0 0 0 1 Unit of F is required when order for E is released. Item = F Q = L4L SS = 0 LT : 1 week Period 0 1 2 3 4 5 6 7 8 Gross Requirement 0 0 0 350 0 0 0 0 Scheduled Receipts 50 0 0 0 0 0 0 0 Projected On Hand 140 190 190 190 0 0 0 0 0 Net Requirements 0 0 0 160 0 0 0 0 Planned Receipts 0 0 0 160 0 0 0 0 Planned Order Release 0 0 160 0 0 0 0 0

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