Product A is an end item and is made from three units of B and four of C. B is m

Question

Product A is an end item and is made from three units of B and four of C. B is made of three units of D and three of E. C is made of two units of F and three of E.

A has a lead time of one week. B, C, and E have lead times of two weeks, and D and F have lead times of three weeks.

b. If 50 units of A are required in Week 10, develop the MRP planning schedule, specifying when items are to be ordered and received. There are currently no units of inventory on hand. (Leave no cells blank - be certain to enter "0" wherever required.)

Period Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases 4 10 Item A OH 20 LT=1 SS=0 Q = L4L Item B OH = 0 LT=2 SS = 0 Q=L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases

Explanation / Answer

For every 1 unit of A we require

3 units of B

4 units of C

9 units of D

21 units of E

8 units of F

For 50 units of A we will require

150 units of B

200 units of C

450 units of D

1050 units of E

400 units of F

Now as we know that the lead time for A is one week and we require A in week 10 hence we require B and C readily available in week 9. For B and C the lead time is 2 weeks. Hence we require D,E,F, available in week 7. As the lead time for E is two weeks, it needs to ordered in week 5. And the lead time for D and F is three weeks, hence they need to be ordered in week 4.

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