Question

Assume that you are the manager of a shop that assembles power tools. You have just received an order for 53 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws is

Item	Lead Time (weeks)	On Hand		Components
Saw	2	15		A(2), B(1), C(4)
A	1	10		E(3), D(1)
B	2	5		D(2), F(3)
C	2	65		E(2), D(2)
D	1	20
E	1	10
F	2	30

  
Develop the material requirements plan for component E using lot-for-lot ordering. (Leave no cells blank - be certain to enter "0" wherever required.)

Item: E(3) & E(2) LT = 1 wk.	Beg. Inv.	1	2	3	4	5	6	7	8
Gross requirements
Scheduled receipts
Projected on hand
Net requirements
Planned order receipt
Planned order release

Answer 1

Item = Saw

	Beg Inv	1	2	3	4	5	6	7	8
Gross requirements		0	0	0	0	0	0	0	53
Scheduled receipts		0	0	0	0	0	0	0	0
Projected on hand	15	15	15	15	15	15	15	15	0
Net requirements		0	0	0	0	0	0	0	38
Planned order receipt									38
Planned order releases							38

Item = A

	Beg Inv	1	2	3	4	5	6	7	8
Gross requirements		0	0	0	0	0	76	0	0
Scheduled receipts		0	0	0	0	0	0	0	0
Projected on hand	10	10	10	10	10	10	0	0	0
Net requirements		0	0	0	0	0	66	0	0
Planned order receipt		0	0	0	0	0	66	0	0
Planned order releases		0	0	0	0	66	0	0	0

Item = C

	Beg Inv	1	2	3	4	5	6	7	8
Gross requirements		0	0	0	0	0	152	0	0
Scheduled receipts		0	0	0	0	0	0	0	0
Projected on hand	65	65	65	65	65	65	0	0	0
Net requirements		0	0	0	0	0	87	0	0
Planned order receipt		0	0	0	0	0	87	0	0
Planned order releases		0	0	0	87	0	0	0	0

Item = E

	Beg Inv	1	2	3	4	5	6	7	8
Gross requirements		0	0	0	174	198	0	0	0
Scheduled receipts		0	0	0	0	0	0	0	0
Projected on hand	10	10	10	10	0	0	0	0	0
Net requirements		0	0	0	164	198	0	0	0
Planned order receipt		0	0	0	164	198	0	0	0
Planned order releases		0	0	164	198	0	0	0	0