Question

                

1. The Bloomington Bike Company produces two models: the Basic and the Supra. Herb Hoosier, the owner, plans to assemble 10 Basics and 15 Supras in each week during periods 4 to 8. Product structure trees for each bike are shown below:
   F(3) K(2) F(2) W(2)
   

   Develop a materials requirement plan (MRP) for component parts X and F over the next eight weeks. Data on all lead times, current inventory and ordering rules are given below: Scheduled receipts are: Period 1: 20 B’s, 18 W’s; Period 2: 20 S’s, 15 F’s. A sample MRP table is provide below.

   ITEM	LEADTIME (WKS)	ON HAND	LOT-SIZING RULE
   B	2	5	Lot-for-lot
   S	2	2	Lot-for-lot
   X	1	5	Multiples of 25
   W	1	2	Multiples of 12
   F	1	10	Multiples of 30
   K	1	3	Lot-for-lot
   Q	1	15	Multiples of 30
   M	1	0	Lot-for-lot

   	1	2	3	4	5	6	7	8
   Gross requirements
   Schedule receipts
   Projected on hand
   Net requirements
   Planned order receipt
   Planned order release

   Note please show up the calculations

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 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 10 10 10 10 Item 10 Gross Requirement 20 SOR20(1) Scheduled Receipt Proiected on Hand 15 25 25 25 10 10 ss = 10 10 Net Requirement 10 10 2 Planned Order Receipt Planned Order Release L4L 15 15 15 15 Item 15 Gross Requirement 20 SOR20(2) Scheduled Receipt Proiected on Hand 15 15 15 15 15 15 Net Requirement 15 15 2 Planned Order Receipt 15 L4L Planned Order Release

Item 10 10 Gross Requirement Scheduled Receipt SOR- 15 Proiected on Hand 10 Net Requirement 25 1 Planned Order Receipt 25 Planned Order Release 25X Item 45 45 95 24 Gross Requirement 15 SOR15(2) Scheduled Receipt Proiected on Hand 26 26 26 26 25 10 10 19 ss = Net Requirement 30 120 1 Planned Order Receipt 30 120 Planned Order Release 30X