Question

Problem 14-5

To simplify data handling to include the receipt of orders that have actually been placed in previous periods, the following six-level scheme can be used. (A number of different techniques are used in practice, but the important issue is to keep track of what is on hand, what is expected to arrive, what is needed, and what size orders should be placed.)

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 57, 57, and 207 are used for Items C, D, and E, respectively. Items C, E, and F have on-hand (beginning) inventories of 17, 57, and 157, respectively; all other items have zero beginning inventory. We are scheduled to receive 17 units of A in Week 2, 57 units of E in Week 1, and also 57 units of F in Week 1. There are no other scheduled receipts. If 37 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.

    

Required:

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 A   LT = 2   Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item B   LT = 1   Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item C   LT = 1   Q = 57	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item D   LT = 2   Q = 57	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item E   LT = 1   Q = 207	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item F   LT = 1   Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance	157
	Net requirements
	Planned order receipts
	Planned order releases

Answer 1

		Week		1	2	3	4	5	6	7	8	9	10
Item:	A	Gross requirements		0	0	0	0	0	0	0	37	0	0
OH =	0	Scheduled receipts		0	17	0	0	0	0	0	0	0	0
LT =	2	Projected available balance	0	0	17	17	17	17	17	17	0	0	0
SS =	0	Net requirements		0	0	0	0	0	0	0	20	0	0
Q =	L4L	Planned order receipts		0	0	0	0	0	0	0	20	0	0
		Planned order releases		0	0	0	0	0	20	0	0	0	0
		Week		1	2	3	4	5	6	7	8	9	10
Item:	B	Gross requirements		0	0	0	0	57	60	0	0	0	0
OH =	0	Scheduled receipts		0	0	0	0	0	0	0	0	0	0
LT =	1	Projected available balance	0	0	0	0	0	0	0	0	0	0	0
SS =	0	Net requirements		0	0	0	0	57	60	0	0	0	0
Q =	L4L	Planned order receipts		0	0	0	0	57	60	0	0	0	0
		Planned order releases		0	0	0	57	60	0	0	0	0	0
		Week		1	2	3	4	5	6	7	8	9	10
Item:	C	Gross requirements		0	0	0	0	0	20	0	0	0	0
OH =	17	Scheduled receipts		0	0	0	0	0	0	0	0	0	0
LT =	1	Projected available balance	17	17	17	17	17	17	54	54	54	54	54
SS =	0	Net requirements		0	0	0	0	0	3	0	0	0	0
Q =	57	Planned order receipts		0	0	0	0	0	57	0	0	0	0
		Planned order releases		0	0	0	0	57	0	0	0	0	0
		Week		1	2	3	4	5	6	7	8	9	10
Item:	D	Gross requirements		0	0	0	57	60	40	0	0	0	0
OH =	0	Scheduled receipts		0	0	0	0	0	0	0	0	0	0
LT =	2	Projected available balance	0	0	0	0	0	54	14	14	14	14	14
SS =	0	Net requirements		0	0	0	57	60	0	0	0	0	0
Q =	57	Planned order receipts		0	0	0	57	114	0	0	0	0	0
		Planned order releases		0	57	114	0	0	0	0	0	0	0
		Week		1	2	3	4	5	6	7	8	9	10
Item:	E	Gross requirements		0	0	0	114	234	0	0	0	0	0
OH =	57	Scheduled receipts		57	0	0	0	0	0	0	0	0	0
LT =	1	Projected available balance	57	114	114	114	0	180	180	180	180	180	180
SS =	0	Net requirements		0	0	0	0	234	0	0	0	0	0
Q =	207	Planned order receipts		0	0	0	0	414	0	0	0	0	0
		Planned order releases		0	0	0	414	0	0	0	0	0	0
		Week		1	2	3	4	5	6	7	8	9	10
Item:	F	Gross requirements		0	0	0	414	0	0	0	0	0	0
OH =	157	Scheduled receipts		57	0	0	0	0	0	0	0	0	0
LT =	1	Projected available balance	157	214	214	214	0	0	0	0	0	0	0
SS =	0	Net requirements		0	0	0	200	0	0	0	0	0	0
Q =	L4L	Planned order receipts		0	0	0	200	0	0	0	0	0	0
		Planned order releases		0	0	200	0	0	0	0	0	0	0