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We want to figure out when to order or make each component or finished good to satisfy specifications and

ensure you have enough inventory to meet demand while taking lead times into account. I will supply the
MRP tables for the final goods and their constituent parts.

MRP for End Items:


Let's start with the MRP for the end items. We have two end items: one that needs 40 units and another that
needs 60 units. The requirements for these end items are as follows:
1. End item 1: Requires 2L, 1C, and 3K.
2. End item 2: Requires 2L, 1C, and 3K.
You have two orders scheduled for weeks 8 and 9.
Week 8:
• End item 1: 40 units required.
• End item 2: 60 units required.

calculate the requirements for the components needed to assemble these end items.

MRP for Components:


Here are the components and their requirements:
1. L: Requires 2B and 3J.
2. C: Requires 2G and 2B.
3. K: Requires 4H and 2B.
4. B: Ordered in lots of 30.
5. J: No direct requirements.
6. G: No direct requirements.
7. H: No direct requirements.

We'll start with the lead times and on-hand quantities for components
• L: Lead time 2, On hand 10.
• C: Lead time 3, On hand 15.
• K: Lead time 3, On hand 20.
• B: Lead time 2, On hand 30.
• J: Lead time 3, On hand 30.
• G: Lead time 3, On hand 5.
• H: Lead time 2, On hand unknown.
Now, let's calculate the MRP for each component.

MRP for Component B:


It is sufficient to order component B in increments of thirty. Until you run out, you don't need to order more
because you currently have thirty. In this instance, B receives no particular orders.

MRP for Components L, C, K, J, G, and H:


It will be necessary for you to determine the needs and create orders for these parts based on the final items'
specifications and lead times.
Let's begin using component L as an illustration:
Week Eight:
Since end item 1 calls for 40 units, 40 x 2 = 80 units of L are required.
Week 09:
60 units are needed for end item 2, so 60 x 2 = 120 units of L are required.
In order to meet these requirements, you should order L in advance, given its two-week lead time.
MRP for Component L:
Week Gross Requirements On Hand Net Requirements Planned Order Lead Time
8 80 10 70 70 2
9 120 70 50 50 2
MRP for Component C:
Week Gross Requirements On Hand Net Requirements Planned Order Lead Time
8 40 15 25 25 3
9 60 25 35 35 3
MRP for Component K:
Week Gross Requirements On Hand Net Requirements Planned Order Lead Time
8 120 20 100 100 3
9 180 100 80 80 3
MRP for Component B:
Week Gross Requirements On Hand Net Requirements Planned Order Lead Time
8 210 30 180 2
9 210 210 210 2
MRP for Component J:
Week Gross Requirements On Hand Net Requirements Planned Order Lead Time
8 80 30 50 50 3
9 120 50 70 70 3
MRP for Component G:
Week Gross Requirements On Hand Net Requirements Planned Order Lead Time
8 40 5 35 35 3
9 60 5 55 55 3

Component H's MRP:


The on-hand quantity for H must be determined using the lead time and gross requirements.
Note: Taking lead times into account, the "Planned Order" column shows you when to order or produce each
component to meet end-user demand. The lead time is the amount of weeks needed to produce the
component or deliver the order.

For components C, K, J, G, and H, repeat this procedure while taking into account their individual
requirements and lead times.

Prior to creating orders for component H, you must ascertain the amount that is currently in stock.

You can make MRP tables that resemble the one for component B, showing when to order each component
to meet the demand for the finished items, once you have determined the requirements and lead time for
each component.

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