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. D is 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 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 net requirements and order release and order receipt dates. (Leave no cells blank - be certain to enter "0" wherever required.)

	Period	1	2	3	4	5	6	7	8	9	10
Item Z OH = 0 LT = 2 SS = 0 Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item A OH = 0 LT = 1 SS = 0 Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item B OH = 0 LT = 1 SS = 0 Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item C OH = 0 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 = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases

Answer 1

The product structre is as under:

N A(2) B(4) C(3) D(4) E(2)

Lead time of the items is shown below"

Item	Lead time (weeks)
Z	2
A	1
B	1
C	1
D	1
E	3

MRP planning schedule:

Period 1 2 3 4 5 6 7 8 9 10 Item Z OH = 0 LT = 2 0 0 0 0 0 0 0 0 0 50 0 0 0 0 0 0 0 0 0 0 SS=0 Q = L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 50 0 0 0 0 0 0 0 0 50 0 0 0 0 0 0 0 0 50 0 0 Period 1 2 3 4 5 6 7 8 9 10 Item A OH = 0 LT = 1 0 0 0 0 0 0 0 100 0 0 0 0 0 0 0 0 0 SS = 0 Q = L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases 0 0 0 0 0 0 0 0 0 ololololo 0 0 0 0 0 0 0 100 0 0 0 0 0 0 0 0 100 0 0 0 0 0 0 0 100 0 0 0

Period 1 2 3 4 5 6 7 8 9 10 Item B OH = 0 LT = 1 SS = 0 Q = L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases 0 0 0 0 0 0 0 200 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 200 0 0 0 0 0 0 0 0 0 200 0 0 0 0 0 0 0 0 200 0 0 0 Period 1 2 3 4 5 6 7 8 9 10 Item C OH = 0 LT = 1 SS=0 0 0 0 0 0 0 300 0 0 0 0 0 0 0 0 0 0 0 Q = L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 olo 300 300 Olo 0 0 0 0 0 0 0 0 0 0 0 0 300 0 0 0 0

Period 1 2 3 4 5 61 89 10 Item D OH = 0 LT = 1 0 0 0 0 0 0 400 0 0 0 0 0 0 0 0 0 0 0 0 0 SS=0 Q = L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 400 0 0 0 0 0 0 0 0 0 400 0 0 0 0 0 0 0 0 400 0 0 0 0 Period 1 2 3 4 5 6 7 8 9 10 Item E OH = 0 LT = 3 0 0 0 0 0 800 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SS=0 Q = L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Oolo 800 0 0 0 0 0 0 800 0 0 0 0 0 0

Projected available balance = Previous period closing stock + Scheduled receipts + Planned order receipts – Gross requirements

Planned receipts are the quantity to be delivered when the Project on hand inventory quantity is negative (so that it becomes equal to or more than zero and is based on lot size). Freshly planned.

Planned order release is the order issued based on the lot size and lead time.

Net requirement is the quantity actually short (if any).

------------------------------------------------------------------------

Note: If you liked the answer please give an Up-vote, this will be quite encouraging for me, thank you!