Question

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 65, 65, and 180 are used for Items C, D, and E, respectively. Items C, E, and F have on-hand (beginning) inventories of 12, 80, and 150, respectively; all other items have zero beginning inventory. We are scheduled to receive 9 units of A in Week 2, 50 units of E in Week 1, and also 50 units of F in Week 1. There are no other scheduled receipts. If 35 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 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 "O" wherever required.) Period Gross requirements Scheduled receipts Projected available balance Item A OH 0 LT-2 SS 0Net requirements Q-L4LPlanned order receipts Planned order releases Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item C он 12 し7-1 Item B LT=1 Q=L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item D LT 2 Q-65 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item E OH 80 LT-1 SS = 0 Q-180Planned order receipts Gross requirements Scheduled receipts Projected available balance Net requirements Planned order releases Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Item F OH-150 LT=1 8 Q.L4L

Answer 1

We will assume that projected available balance means that the beginning inventory at that period. Since no specific instruction is given, projected available balance is sometimes taken at the end of the period or before the period. At this point, we will assume it is at the beginning of the period.

Based on this, the MRP is shown below

	Period	1	2	3	4	5	6	7	8
	Gross requirement	0	0	0	0	0	0	0	35
Item A	Scheduled receipts	0	9	0	0	0	0	0	0
OH = 0	Projected available balance	0	9	9	9	9	9	9	9
LT = 2	Net requirements	0	0	0	0	0	0	0	26
SS = 0	Planned order receipts	0	0	0	0	0	0	0	26
Q = L4L	Planned order release	0	0	0	0	0	26	0	0
	Gross requirement	0	0	0	0	0	26	0	0
Item C	Scheduled receipts	0	0	0	0	0	0	0	0
OH = 12	Projected available balance	12	12	12	12	12	12	51	51
LT = 1	Net requirements	0	0	0	0	0	14	0	0
SS = 0	Planned order receipts	0	0	0	0	0	65	0	0
Q = 65	Planned order release	0	0	0	0	65	0	0	0
	Gross requirement	0	0	0	0	65	78	0	0
Item B	Scheduled receipts	0	0	0	0	0	0	0	0
OH = 0	Projected available balance	0	0	0	0	0	0	0	0
LT = 1	Net requirements	0	0	0	0	65	78	0	0
SS = 0	Planned order receipts	0	0	0	0	65	78	0	0
Q = L4L	Planned order release	0	0	0	65	78	0	0	0
	Gross requirement	0	0	0	65	78	52	0	0
Item D	Scheduled receipts	0	0	0	0	0	0	0	0
OH = 0	Projected available balance	0	0	0	0	0	0	0	0
LT = 2	Net requirements	0	0	0	65	78	52	0	0
SS = 0	Planned order receipts	0	0	0	65	78	52	0	0
Q = 65	Planned order release	0	65	78	52	0	0	0	0
	Gross requirement	0	0	0	130	156	52	0	0
Item E	Scheduled receipts	50	0	0	0	0	0	0	0
OH = 80	Projected available balance	80	130	130	130	0	24	152	152
LT = 1	Net requirements	0	0	0	0	156	28	0	0
SS = 0	Planned order receipts	0	0	0	0	180	180	0	0
Q = 180	Planned order release	0	0	0	180	180	0	0	0
	Gross requirement	0	0	0	180	180	0	0	0
Item F	Scheduled receipts	50	0	0	0	0	0	0	0
OH = 150	Projected available balance	0	50	50	50	0	0	0	0
LT = 1	Net requirements	0	0	0	130	180	0	0	0
SS = 0	Planned order receipts	0	0	0	130	180	0	0	0
Q = L4L	Planned order release	0	0	130	180	0	0	0	0