Bhuvnesh Kumawat 2019pbm5579

Q1. Two product of a manufacturing firm are P1 and P2. P1 consists of sub-
assemblies S1 and S2. S1 requires 1 unit of C1, 4 units of C2and 1 unit of C3
whereas S2 requires 2 units of C4, 2 units of C5 and 1 unit of C6. Product P2 is
produced by assembling S3(1), C7 and S4. Each unit of S3 requires 1 unit of C4
and 4 units of C6 whereas each unit of S4 requires 2units of C2 and 1 unit of
C8. Each unit of C4 requires 1 unit of M4. The MPS for P1 and P2 is given as
Week 6 7 8 9 10
P1 50 100
P2 70 80 25

The initial inventory status for M4

Period 1 2 3 4 5 6
Item raw material M4
Gross Requirement
Schedule receipts 40
On Hand (50) 90
Net Requirement
Planned order release

Lead time is as given

Assembly Manufacturing Ordering
P1 = 1 C4=2 M4= 3
P2 = 1
S2 = 1
S3 = 1
Solution 1.

PERIOD 1 2 3 4 5 6 7 8 9 10
Product P1
Gross 50 100
Requirement
Schedule receipts
On Hand (0)
Net Requirement 50 100
Planned order 50 100
release

PERIOD 1 2 3 4 5 6 7 8 9 10
Product P2

Gross 70 80 25
Requirement
Schedule receipts
On Hand (0)

Net Requirement 70 80 25

Planned order 70 80 25
release

S2 with Lead Time 1 week:

PERIOD 1 2 3 4 5 6 7 8 9 10

Sub component
S2
Gross 50 100
Requirement
Schedule
receipts
On Hand (0)

Net 50 100
Requirement
Planned order 50 100
release
S3 with lead time 1 week:

PERIOD 1 2 3 4 5 6 7 8 9 10

Sub Component
S3
Gross 70 80 25
Requirement
Schedule
receipts
On Hand (0)

Net 70 80 25
Requirement
Planned order 70 80 25
release

C4 with Lead time 2 weeks:

PERIOD 1 2 3 4 5 6 7 8 9 10

Sub Component
C4
Gross 70 180 25 200
Requirement
Schedule
receipts
On Hand (0)

Net 70 180 25 200

Requirement
Planned order 70 180 25 200
release
M4 with Lead time 3 weeks:

PERIOD 1 2 3 4 5 6 7 8 9 10

Sub
Component M4
Gross 70 180 25 200
Requirement
Schedule 40
receipts
On Hand 90 20
(50)
Net -20 160 25 200
Requirement
Planned order 160 25 200
release
Q2. A firm produces product A which require 2 units of B and 3 units of C.
Draw MRP for
1. Using fixed order quantity of 80 units for product A keeping safety stock
of 20 and its lead time is 1 week.
2. Using Lot for lot order for C having lead time 1 week.
The MPS for A is given as
Period 1 2 3 4 5 6 7 8
Item 80 190 310

Solution 2.
1. Fixed order quantity
PERIOD 1 2 3 4 5 6 7 8

Gross Requirement 80 190 310

Schedule Receipts

On Hands | 60 60 60 60 60 60 30 30 40

Net Requirement 40 150 300

Planned Order
Receipts 80 160 320
Planned Order
Release 80 160 320