ASSIGNMENT MRP

Product A is composed of 3 subassemblies: 3Bs, 2Cs, and D. C is assembled using 2Es, F,

2Gs. On hand inventories (POH) are 50Es, and 100Fs. Scheduled receipts (SR) are 150Es at
the start of week 1. 300 As will be shipped at the start of week 5 and another 400 at the start of
week 8. Lead times are as follows

Weeks 1 2 3 4 5 6 7 8

Quantity 300 400

Item: A

Week 1 2 3 4 5 6 7 8

G/R 300 400

S/R

POH

N/R 300 400

POR 300 400

PRL 300 400

Item: C

Week 1 2 3 4 5 6 7 8

G/R 600 800

S/R

POH

N/R 600 800

POR 600 800

PRL 600 800

Item: E

Week 1 2 3 4 5 6 7 8
G/R 1200 1600

S/R 150

POH 50 200 200

N/R 1000 1600

POR 1000 1600

PRL 1000 1600

Week 1 2 3 4 5 6 7 8

G/R 600 800

S/R

POH 100 100 100

N/R 500 800

POR 500 800

PRL 500 800

Legend: G/R= gross requirements, S/R = scheduled receipts, POH = planned on hand, N/R = net

ITEM A

Quantity 300

Net Requirements 300 – 0 – 0 = 300

WEEK 5
Planned Order Receipts 300 since there is no lot size for item A, hence, LFL

Planned Releases 300 in week 4 since it requires 1-week lead time.

WEEK 8 Quantity 400

Net Requirements 400 – 0 – 0 = 400

Planned Order Receipts 400 since there is no lot size for item A
 Planned Releases 400 in week 7 since it requires 1-week lead time.

ITEM C

Quantity 300*2 = 600

Net Requirements 600 – 0 – 0 = 600

WEEK 4
Planned Order Receipts 600 since there is no lot size for item C

Planned Releases 600 in week 3 since it requires 1-week lead time.

Quantity 400*2 = 800

WEEK 7 Net Requirements 800 – 0 – 0 = 800

Planned Order Receipts 800 since there is no lot size for item C

Planned Releases 800 in week 6 since it requires 1-week lead time.

ITEM E

Quantity 600*2 = 1200

Net Requirements 1200 – 0 – 200 = 1000

WEEK 3
Planned Order Receipts 1000 since there is no lot size for item E

Planned Releases 1000 in week 2 since it requires 1-week lead time.

Quantity 800*2 = 1600

WEEK 6 Net Requirements 1600 – 0 –0 = 1600

Planned Order Receipts 1600 since there is no lot size for item E

Planned Releases 1600 in week 4 since it requires 2 weeks lead time.

POH is the S/R (150) from week 1 which became on hand on week 2 and inventory on hand (50)
in week 1. The POH in week 2 are carried over to week 3.
 ITEM F

300*2 = 600

600 – 0 – 100 = 500

(500/10)*50 = 500

500 in week 2 since it requires 1-week lead time.

Quantity 400*2 = 800

WEEK 6 Net Requirements 800 – 0 – 0 = 800

Planned Order Receipts (800/50)*50 = 1800

Planned Releases

POH is the inventory on hand (100) in week 1. The POH in week 1 are carried over to week 3.