Question

Your stockroom manager, Yamil Bermudez, arrived at your desk just after you had completed the net requirements plan for product A (use data given below), exclaiming that the cycle counter should be fired. It seems that the cycle counter was wrong. There are three As available now, not zero, as the original data showed. Moreover, five Es are also available. About then, your boss, Sam Melnyk, who overheard the discussion, says, "You might as well extend the net requirements plan out to 16 weeks, because we just received an order for 10 more As in week 12 and 5 more in week 15. Additionally, count on the fleld service department wanting 3 more Bs in week 16, as well as those 10 units of B and F in week 6. 囲 Click the icon to view the completed net requirements plan for product A. 囲Click the icon to view the inventory on hand for each product. Click the icon to view the structure tree Complete a new net requirements plan, based on the actual inventory (as reported) and the new schedule (enter your responses as whofe numbers) Item A Weck 1 23 4 56 78 9 10 11 12 13 14 15 16 0 10 10 On hand 10 Net requirement Planned order receipt 10 10 0 Planned order release Item B Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 10 0 Gross requirement 10 7 On hand 2 2 2 22 2 O 10 0 Net requirement 10 0 Planned order receipt Planned order release 10 tem C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Week Gross requirement 10 7 10 10 On hand 10 10 10 10 10 Net requirement 10 10 Planned order receipt 10 10 5.3 Planned order release 1010 Answe.

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

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)

The MRP of items is developed in order as per their level in the product structure. So MRP of parent items is created first and child items later. The gross requirements is computed on the basis of MRP of parent items.

MRP of all the items are developed as below:

16 15 14 12 13 10 11 MRP 10 Item 10 Gross Requirement 10 Proiected on Hand ss = 10 Net Requirement 10 1 Planned Order Receipt L4L Planned Order Release 16 14 15 11 1213 10 10 Item 10 Gross Requirement Proiected on Hand 10 10 Net Requirement 10 1 Planned Order Receipt Planned Order Release L4L 16 15 14 11 12 13 10 10 Item 10 Gross Requirement Proiected on Hand 10 10 Net Requirement 10 1 Planned Order Receipt Planned Order Release L4L 16 15 14 11 12 13 10 Item Gross Requirement 10 Proiected on Hand 10 Net Requirement 10 1 Planned Order Receipt L4L Planned Order Release

15 16 14 11 12 13 Item 10 Gross Requirement Proiected on Hand 10 Net Requirement 10 4Planned Order Receipt 10 Planned Order Release L4L 14 15 16 10 1112 13 Item 10 Gross Requirement 10 10 10 10 10 Proiected on Hand 10 Net Requirement 10 1 Planned Order Receipt 10 Planned Order Release 16 15 11 12 13 14 10 Item 10 10 10 Gross Requirement 10 1010 10 Proiected on Hand 10 10 10 10 ss = Net Requirement 2 Planned Order Receipt 10 10 Planned Order Release 16 14 15 11 12 13 10 Item 10 20 Gross Requirement Proiected on Hand 10 20 Net Requirement 10 20 1 Planned Order Receipt 10 20 Planned Order Release