Practice Question

Consider the following product structure.

Prepare a MRP based on lot-for-lot ordering except for D which is ordered in

multiples of 40.
95 units of E is needed at the beginning of week 7.
5 units of E is already in hand. 50 units of B, 100 units of C and 80 units of D are in
hand.
30 units of C is outsourced and are expected to arrive at the beginning of 4th week.
The lead time is 2 weeks for both E and C and 1 week for other items.

B(3) C(2)

D(2) I(2) S(2) D(2)

a. Prepare bill of material

Componen Available 1E 90E

t
B 50 3 270-50=220
C 100 2 180-100=80
D 80 10 (220*2)+(80*2)-80=520
I 0 6 440
S 0 4 160
b. Fill the following MRP.

Master Week 1 2 3 4 5 6 7
Schedule for:
Quantity 95
E

E LT=2 Beg.
1 2 3 4 5 6 7
Lot size: Lot-for-Lot Inv.
Gross requirements 95
Scheduled receipts
Projected on hand 5 5 5 5 5 5 5 0
 Net requirements 90
Planned-order receipts 90
Planned-order releases 90

B(3) LT=1 Beg.

1 2 3 4 5 6 7
Lot size: Lot-for-Lot Inv.
Gross requirements 270
Scheduled receipts
Projected on hand 50 50 50 50 50 0
Net requirements 220
Planned-order receipts 220
Planned-order releases 220

C(2) LT=2 Beg.

1 2 3 4 5 6 7
Lot size: Lot-for-Lot Inv.
Gross requirements 180
Scheduled receipts 30
Projected on hand 100 100 100 100 130 0
Net requirements 50
Planned-order receipts 50
Planned-order releases 50

D(2) & D(2) LT=1 Beg.

1 2 3 4 5 6 7
Lot size: Multiples of 40 Inv.
Gross requirements 100 440
Scheduled receipts
Projected on hand 80 80 80 0 20 20 20 20
Net requirements 20 420
Planned-order receipts 40 440
Planned-order releases 40 440

I(2) LT=1 Beg.

1 2 3 4 5 6 7
Lot size: Lot-for-lot Inv.
Gross requirements 440
Scheduled receipts
Projected on hand
Net requirements 440
Planned-order receipts 440
Planned-order releases 440

S(2) LT=1 Beg.

1 2 3 4 5 6 7
Lot size: Lot-for-lot Inv.
Gross requirements 100
Scheduled receipts
Projected on hand
Net requirements 100
Planned-order receipts 100
Planned-order releases 100