Question

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Given the following data, construct a material requirements plan for all components which will result in 200 units of (P) at the beginning of week 6. P A B (3) B (2) Item Currently On- Hand Scheduled Receipt (wk) Lead time Order Quantity P A B 70 50 30 (wk3) 1 L4L Lot size 100 Lot size 100 3

Answer 1

Steps to create the MRP 1) Enter the gross requirement as per Master Planning Schedule (MPS). Gross requirement of components is calculated as per usage in parent item. 2) Enter Schedule Order Receipts (SOR), if there are any. 3) Project On hand is calculated by this formula = Previous period project on hand + Scheduled receipts + Planned order receipts - gross requirement 4) Net requirement = Gross requirement - Projected on hand 5) Planned Order Release (POR) is manually entered such that time phased planned order receipt is equal to net requirement. For example, if lead time is 1 period, and there is net requirement of 80 units in period 3, then there is a planned order release for 80 units in period 2, i.e. 1 period prior to the period in which requirement occurs. Planned Order Release quantity is as per the Lot size specified, i.e. LFL, or Fixed Order Quantity, or POQ or EOQ or in Multiples of a specified quantity. 6) If there is safety stock specified for an item, then safety stock quantity is added in Planned Order Release so that Project On Hand remains greater than or equal to safety stock as specified.

0 1 2 3 4 5 MRP Item P SR = 0 0 0 0 0 200 0 0 0 0 0 0 0 0 0 0 Gross Requirement Scheduled Receipt Projected on Hand Net Requirement 1 Planned Order Receipt LFL Planned Order Release 0 0 0 0 0 200 200 1 0 0 0 0 200 L = Q= 0 0 0 0 0 1 3 4 5 NO 0 0 0 200 0 0 0 0 Item A Gross Requirement SR = 30(3) Scheduled Receipt Projected on Hand Net Requirement 1 Planned Order Receipt Q = 100 Planned Order Release 70 70 30 100 0 70 0 0 0 0 100 0 0 100 II 1 0 100 100 0 0 0 0 Item 0 1 2 3 4 6 5 600 0 0 0 0 B SR = 0 0 0 0 50 50 50 Gross Requirement Scheduled Receipt Projected on Hand Net Requirement Planned Order Receipt 100 Planned Order Release 200 0 50 150 200 50 50 550 3 L = Q= 0 0 200 600

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