Question

Use the following inventory information for the MRP problems that follow regarding Z: Lot Size: On Hand: 4,000 800 0 Safety Stock: Allocated: Lead Time: Regardless of the values for Y computed above, use the following information going forward. (That is, do not change your earlier answers but use the new values going forward.) Note: These are not the correct answers for the questions above. Planned order releases of 1.200 for X in periods four, five, and seven. Planned order releases of 1,500 for Y in periods two. four, and six. Why am I giving you this changed information? Without this, if you made a mistake in any of the earlier grids, all the remaining grids would automatically be incorrect. As a result, you would get very few points on the exam. In other words, this is meant to help you do better on the exam by keeping one mistake from affecting all your calculations. Question 14 (2 points) Which of the following periods have planned gross requirements for Z? Check all that apply. A) Period 1 B) Period 2 C) Period 3 D) Period 4 E) Period 5 F) Period 6 G) Period 7 H) Period 8 Question 15 (1 point What is the available inventory at the beginning of period 1 for 2? Your Answer: 6 Answer Use the following bill of material information for all the MRP problems that follow Each X is made up of one Y and 2 Zs. Each Y is made up of 2 A's and one B Each Z is made up of 3 A's and one C. Use the following information for the MRP problems that follow regarding X. Gross requirements for periols 1-8 are: 700, 500, 800, 700, 900, 1,100, 500, and 600. The inventory information follows: 1,000 1,300 300 0 Lot Size On Hand: Safety Stock: Allocated Lead Time: Use the following inventory information for the MRP problems that follow regarding Y: Lot Size: On Hand 1,500 0 0 Safety Stock: Allocated: Lead Time: Regardless of the values for X computed above, use the following planned order releases for X for the remaining questions: 1,200 in periods four, five, and seven. (That is, do not change your earlier answers but use the nevw values going forward.) Note: These are not the correct answers for the questions above.

Answer 1

Formulas:

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 Release (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

Projected available balance: scheduled receipts plus available inventory from last period. Planned order receipts: the quantity expected to be received by the beginning of the period. Planned order release: the planned amount to order, which equals the planned order receipts offset by lead time. It also generates gross requirements at the next level. Net requirements gross requirements projected available balance Projected available balance- on hand inventory - safety stock scheduled receipts (if any)

MRP for item X

MRP Item 3 4 5 6 Gross Requirement 700 500 800 700 900 1100500 600 Scheduled Receipt 6001100500 400 300 Proiected on Hand 1300 600 700 600 1100300 Net Requirement 1 Planned Order Receipt 1000 Planned Order Release 400300 100010001000 1000 1000 1000 100010001000 1000

Based on the given new information about planned order releases of X: 1200 in periods 4, 5, and 7, The MRP of Y is following:

Item 2 3 4 5 6 9 Gross Requirement Scheduled Receipt Proiected on Hand Net Requirement 1200 1200 1200 SOR 300 600600 9 900 900 900 600 1500 1200 900 1 Planned Order Receipt 15001500 Planned Order Release 1500 15001500 1500

Y is not a parent item of Z. Therefore, planned order releases of Y do not affect the MRP of Z. Based on the given new information about planned order releases of X: 1200 in periods 4, 5, and 7, The MRP of Z is following:

Item 2 3 4 6 Gross Requirement Scheduled Receipt Proiected on Hand Net Requirement 1 Planned Order Receipt 2400 2400 2400 SOR- 800 8008002400 1600 4000 800 160016001600 2400 4000 Q- 4000 Planned Order Release 4000 4000

Q 14. period, 4, 5, 7

Q 15. 800