Question

Assume that Product Z is made of two units of A and three units of B. A is made of four 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 one 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

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 Relese (POR) is manually entered such that time phased planned order receipt is equal to net require 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

MRP 10 4 Item 51 Gross Requirement Scheduled Receipt Proiected on Hand Net Requirement 2 Planned Order Receipt SOR = 51 ss = 51 51 L4L Planned Order Release 10 4 Item 102 Gross Requirement Scheduled Receipt Proiected on Hand Net Requirement 1 Planned Order Receipt Planned Order Release SOR 102 102 ss = 102 L4L 10 4 Item 153 Gross Requirement Scheduled Receipt Proiected on Hand Net Requirement 1 Planned Order Receipt SOR 153 153 ss = 153 L4L Planned Order Release

Item 10 Gross Requirement Scheduled Receipt Proiected on Hand Net Requirement 1 Planned Order Receipt Planned Order Release 408 SOR- ss = 408 408 L4L 408 Item 10 Gross Requirement Scheduled Receipt Proiected on Hand Net Requirement 1 Planned Order Receipt Planned Order Release 408 SOR 408 408 L4L 408 Item 10 Gross Requirement Scheduled Receipt Proiected on Hand Net Requirement Planned Order Receipt 816 816 816 3 L4L Planned Order Release 816