LOT-4-LOT

STEP 1 – MRP EXPLOSION CALCULATION

MRP Explosion Calculations Week
Item -2 -1 1 2 3 4 5 6 7 8
Gross
P0110 400 350 300 450 300 450 225 525
requirement
Scheduled
Lot Size L4L
receipts
Projected
Lead Time 2 available 240 240 0 0 0 0 0 0 0 0
balance
On Hand Net
240 160 350 300 450 300 450 225 525
inventory requirements
Planned order
160 350 300 450 300 450 225 525
receipts
Planned order
160 350 300 450 300 450 225 525
release

MRP Explosion Calculations Week

Item -4 -3 -2 -1 1 2 3 4 5 6 7 8

Gross
POX 320 700 600 900 600 900 450 1050
requirement
Scheduled
lot size L4L
receipts
Projected
lead time 1 available 500 500 180 0 0 0 0 0 0 0
balance
on hand Net
500 0 520 600 900 600 900 450 1050
inventory requirements
Planned order
0 520 600 900 600 900 450 1050
receipts
Planned order
0 520 600 900 600 900 450 1050
release

MRP Explosion Calculations Week

Item -4 -3 -2 -1 1 2 3 4 5 6 7 8

Gross
POY 320 700 600 900 600 900 450 1050
requirement
Scheduled
lot size L4L
receipts
Projected
lead time 1 available 340 340 20 0 0 0 0 0 0 0
balance
on hand Net
340 0 680 600 900 600 900 450 1050
inventory requirements
Planned order
0 680 600 900 600 900 450 1050
receipts
Planned order
0 680 600 900 600 900 450 1050
release

MRP Explosion Calculations Week

Item -4 -3 -2 -1 1 2 3 4 5 6 7 8

Gross
P1X1 2080 2400 3600 2400 3600 1800 4200
requirement
Scheduled
lot size L4L
receipts
Projected
lead time 1 available 500 500 0 0 0 0 0 0 0
balance
on hand Net
500 1580 2400 3600 2400 3600 1800 4200
inventory requirements
Planned order
1580 2400 3600 2400 3600 1800 4200
receipts
Planned order
1580 2400 3600 2400 3600 1800 4200
release
MRP Explosion Calculations Week
Item -4 -3 -2 -1 1 2 3 4 5 6 7 8

Gross reLot
P1X2 1560 1800 2700 1800 2700 1350 3150
Sizeuirement
Scheduled
Lot Size L4L
receipts
Projected
lead time 1 available 600 600 0 0 0 0 0 0 0
balance
on hand Net reLot
600 960 1800 2700 1800 2700 1350 3150
inventory Sizeuirements
Planned order
960 1800 2700 1800 2700 1350 3150
receipts
Planned order
960 1800 2700 1800 2700 1350 3150
release

STEP-2 ESTIMATING THE COST

P0110            
Week Net Production Ending Holding Setup Total
Requirements Quantity Inventory Cost Cost Cost
1 160 160 0 0 500 500
2 350 350 0 0 500 1000
3 300 300 0 0 500 1500
4 450 450 0 0 500 2000
5 300 300 0 0 500 2500
6 450 450 0 0 500 3000
7 225 225 0 0 500 3500
8 525 525 0 0 500 4000

P0X            
Week Net Production Ending Holding Setup Total
Requirements Quantity Inventory Cost Cost Cost

-1 520 520 0 0 400 400

1 600 600 0 0 400 800
2 900 900 0 0 400 1200
3 600 600 0 0 400 1600
4 900 900 0 0 400 2000
5 450 450 0 0 400 2400
6 1050 1050 0 0 400 2800
 POY            
Week Net Production Ending Holding Setup Total
Requirements Quantity Inventory Cost Cost Cost

-1 680 680 0 0 350 350

1 600 600 0 0 350 700
2 900 900 0 0 350 1050
3 600 600 0 0 350 1400
4 900 900 0 0 350 1750
5 450 450 0 0 350 2100
6 1050 1050 0 0 350 2450

P1X1            
Week Net Production Ending Holding Setup Total
Requirements Quantity Inventory Cost Cost Cost

-2 1580 1580 0 0 430 430

-1 2400 2400 0 0 430 860
1 3600 3600 0 0 430 1290
2 2400 2400 0 0 430 1720
3 3600 3600 0 0 430 2150
4 1800 1800 0 0 430 2580
5 4200 4200 0 0 430 3010

P1X2            
Week Net Production Ending Holding Setup Total
Requirements Quantity Inventory Cost Cost Cost

-2 960 960 0 0 400 400

-1 1800 1800 0 0 400 800
1 2700 2700 0 0 400 1200
2 1800 1800 0 0 400 1600
3 2700 2700 0 0 400 2000
4 1350 1350 0 0 400 2400
5 3150 3150 0 0 400 2800

STEP-3 TOTAL COST

 Item Cost
P0110 4,000
P0X 2,800
P0Y 2,450
P1X1 3,010
P1X2 2,800
Total Cost L4L 15,060