MRP Exercise

IME 458

Consider the bills of materials (attached) and item master file data (below) for super
widget A.

a) For the master production schedule (MPS) below, compute the planned order releases
for super widget A using lot-for-lot lot-sizing rule.

Week 1 2 3 4 5 6 7 8 9 10
Demand 41 44 84 42 84 86 7 18 49 30

b) Assuming you want to generate the MRP output for all of the items required to
produce A, which of the remaining items (200, 300, 400) should you compute next?
Why?

c) Compute the POR’s for the item you chose in b). Use the fixed order quantity lot-
sizing rule assuming holding costs for this item are about $1 per week per unit, and
set-up costs are estimated at $100 per set-up. Since containers for this item hold 10,
round your order quantity to the nearest multiple of 10.

d) Perform the MRP calculations for the simpler of the remaining items, and generate
change notices and exception reports as appropriate. Use lot-for-lot.

e) Perform the MRP calculations for the one remaining item, and generate change
notices and exception reports as appropriate. Use lot-for-lot. What is the level code
for this item?

Item Master Data

Item Current Amount Week Lead Time
Inventory on Order Due (weeks)
A 120 -- -- 2
200 300 200 3 2
100 5
300 140 100 4 2
100 7
400 200 -- -- 3
 Bills of Materials

200 (2) 400

200 300

Bill of Material
Stock No. A
Description Super widget
Components
Stock No. Description Qty Source
200 Nut-bolt-washer ass’y 2 Purch.
400 Main module 4 1 Mfg.

Bill of Material
Stock No. 400
Description Main module 4
Components
Stock No. Description Qty Source
200 Nut-bolt-washer ass’y 1 Purch.
300 Tubular half-moon pair 1 Purch.
 MRP Worksheet

Item: ___________

Period 1 2 3 4 5 6 7 8 9 10 11 12

Gross
Requirements
Scheduled
Receipts
Adjusted
Sch. Receipts
Projected
On-Hand
Net
Requirements
Planned Order
Receipts
Planned Order
Releases

Item: ___________

Period 1 2 3 4 5 6 7 8 9 10 11 12

Gross
Requirements
Scheduled
Receipts
Adjusted
Sch. Receipts
Projected
On-Hand
Net
Requirements
Planned Order
Receipts
Planned Order
Releases