Question

Extra Credit MRP Exercise (15 Points) Given: Indented Bill of Material Master Production Schedule (MPS) and Material Requirements Planning (MRP) Tables Bill of Material (QPA) A =Finished Good LT=1 B (1 LT-3 C(2) LT=2 D(1) LT 2 LT-2 F (2) LT-2 G (1) LT=1 Answer the following questions: 1). Fill in MPS/MRP tables provided 2). For Part Number B: What is the first period in which there is a net requirement ?:_AND, What is the net requirement Quantity (in the first period in which there is a net requirement:_ 3). For Part Number : Does the scheduled receipt in period 6 need to be rescheduled? the scheduled receipt in period 6 needs to be rescheduled, what period does the scheduled receipt need to be rescheduled in to? 4) For Part Number : What is the first period in which there is a net requirement ?: What is the net requirement Quantity (in the first period in which there is a net requirement: AND

Answer 1

Answer:

Please refer the formulas for filling the tables

t = current week

t-1 = previous week

scheduled receipt = SR (if given)

On-hand inventory / projected ending inventory (t) = on-hand inventory (t-1) - gross requirement (t)

(if on-hand inventory (t-1) > gross requirement (t))

On-hand inventory / projected ending inventory (t) = 0 (if on-hand inventory (t-1) <= gross requirement (t))

Net requirement (t) = 0 (if, on-hand inventory (t-1) >= gross requirement (t))

Net requirement (t) = Gross requirement (t) – [on-hand inventory (t-1) + scheduled receipt] (if, on-hand inventory (t-1) + SR(t) < gross requirement (t))

Planned receipt (t) = Net requirement (t)

Planned order release = Planned receipt (t), but offsetted ahead by lead time (i.e. if Lead time 2, planned order release will be offsetted by 2 weeks)

1) Tables for B and C are given in answers 2) and 4).

MRP Table A

Gross requirements given and for the 1st two periods, taken the greater of customer order or forecast.

Projected on hand, for period 1 = 700 - 25 (SS) = 675

SS = 25 Period 1 4 5 6 9 10 11 12 2 100 3 100 7 100 8 100 105 100 100 100 100 100 100 100 Lot size=300 and QOH = 700 A ALT = 1) Gross requirement Scheduled receipts Projected on hand Net requirement planned order receipt planned orders RELEASE 675 570 470 370 270 170 70 270 170 70 270 170 0 0 0 0 0 0 0 0 0 30 0 30 300 300 300 300

2)

MRP Table B

Since planned order release of A is on week 7 and week 10.

Hence, Gross requirement for B is also on week 7 and 10. And for 1 A, 1 B is needed. Hence, quantitiy is same.

The first period in which there is net requirement? Period 7 (green cell)

What is the net requirement quantity? 210 (green cell) (Use net requirement formula given above) i.e.

300 - 90 =210

SS = 10 Period 1 2 3 4 5 7 8 9 10 11 12 300 300 Lot size = 1000 and QOH = 100 B B(LT = 3) Gross requirement Scheduled receipts Projected on hand Net requirement planned order receipt planned orders RELEASE 90 90 90 90 90 90 790 790 790 210 490 0 1000 1000

3) MRP Table F

Yes, the scheduled receipt in period 6 needs to be rescheduled.

In period 4, the scheduled receipt must be rescheduled. (see the Red arrow)

SS = 25 Period 1 2 3 4 5 7 8 9 10 11 12 2000 Lot size = 2000 and QOH =400 F. FILT = 2) Gross requirement Scheduled receipts Projected on hand Net requirement planned order receipt planned orders RELEASE 1000 375 375 375 375 375 1375 1625 2000 2000

4)

MRP TABLE F

What is the first period in which there is net requirement? Period 4 (green cell)

Net requirement quantity = 1625 (2000 - 375)   [refer formulas]