Question

The bill of materials and the data from the inventory records for product A are shown in the figure to the right. Assume that the MPS start quantities for A are 100 units in weeks 1, 2, and 7. Derive an MRP plan for the components going into product A using the data in the table below Item Data Category L4L 2 weeks 100 (week 2) 350 L4L 1 week None 215 Lot-sizing rule Lead time Scheduled receipts Beginning inventory 2 weeks None 260 (Note the textbook does not follow low level coding: anyway, do material plan for C first, then D and then E.) Complete the material requirements plan. (Enter your responses as integers. A response of "O" is equivalent to being not applicable.)

Answer 1

Here , we need 100 units of A for week 1 ,2, and 7. so corresponding 100 units of C,D,E is needed at week 1,2, and 7. apart from that for each unit of C we need 1 unit of D and so on. So in week 6 we need 85 units od C and thus we will also require 85 units of D. Since all the requirements of D are fulfilled by in-hand inventory and scheduled receipts, we need not plan more of D.

project on hand = Begining inventory - gross requirement.

C and D follow L4L so we plann order same amount as required. But for E we had to order 250 even though we need less.

						period
		PD	1	2	3	4	5	6	7
C	Gross requirements		100	100	0	0	0	0	100		Lead time
	Schedule receipt		0	0	0	0	0	0	0		1
	projected-on-hand	215	115	15	15	15	15	15	0
	Net requirements		0	0	0	0	0	0	85
	planned order receipts		0	0	0	0	0	0	85
	planned order releases		0	0	0	0	0	85	0
D	Gross requirements		100	100	0	0	0	85	100		Lead time
	Schedule receipt		0	100	0	0	0	0	0		2
	projected-on-hand	350	250	250	250	250	250	165	65
	Net requirements		0	0	0	0	0	0	0
	planned order receipts		0	0	0	0	0	0	0
	planned order releases		0	0	0	0	0	0	0
E	Gross requirements		100	100	0	0	0	0	100		Lead time
	Schedule receipt		0	0	0	0	0	0	0		2
	projected-on-hand	260	160	60	60	60	60	60	210
	Net requirements		0	0	0	0	0	0	40
	planned order receipts		0	0	0	0	0	0	250
	planned order releases		0	0	0	0	250	0	0