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 50, 50, 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 160, respectively; all other items have zero beginning inventory. We are scheduled to receive 10 units of A in Week 2, 50 units of E in Week 1, and also 40 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.

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 10 0 0 0 0 0 0 Projected On Hand 0 0 10 10 10 10 10 10 0 Net Requirements 0 0 0 0 0 0 0 20 Planned Receipts 0 0 0 0 0 0 0 20 Planned Order Release 0 0 0 0 0 20 0 0 Unit C is required when order for A is released Item = C Q = 50 SS = 0 LT : 1 week Period 0 1 2 3 4 5 6 7 8 Gross Requirement 0 0 0 0 0 20 0 0 Scheduled Receipts 0 0 0 0 0 0 0 0 Projected On Hand 10 10 10 10 10 10 40 40 40 Net Requirements 0 0 0 0 0 10 0 0 Planned Receipts 0 0 0 0 0 50 0 0 Planned Order Release 0 0 0 0 50 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 50 60 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 50 60 0 0 Planned Receipts 0 0 0 0 50 60 0 0 Planned Order Release 0 0 0 50 60 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 = 50 SS = 0 LT : 2 week Period 0 1 2 3 4 5 6 7 8 Gross Requirement 0 0 0 50 60 40 0 0 Scheduled Receipts 0 0 0 0 0 0 0 0 Projected On Hand 0 0 0 0 0 40 0 0 0 Net Requirements 0 0 0 50 60 0 0 0 Planned Receipts 0 0 0 50 100 0 0 0 Planned Order Release 0 50 100 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 0 100 220 0 0 0 Scheduled Receipts 50 0 0 0 0 0 0 0 Projected On Hand 50 100 100 100 0 130 130 130 130 Net Requirements 0 0 0 0 220 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 40 0 0 0 0 0 0 0 Projected On Hand 160 200 200 200 0 0 0 0 0 Net Requirements 0 0 0 150 0 0 0 0 Planned Receipts 0 0 0 150 0 0 0 0 Planned Order Release 0 0 150 0 0 0 0 0

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.