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Practice Question MRP - Solution

The document provides information to prepare an MRP for a product structure including a bill of materials. It specifies that lot-for-lot ordering should be used except for component D which is ordered in multiples of 40. It gives beginning inventory levels and projected demand for component E. The MRP table is then filled in based on this information, showing net requirements, planned order receipts and releases for each component by week over the 7 week planning horizon.

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Abhishree Jain
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0% found this document useful (0 votes)
64 views

Practice Question MRP - Solution

The document provides information to prepare an MRP for a product structure including a bill of materials. It specifies that lot-for-lot ordering should be used except for component D which is ordered in multiples of 40. It gives beginning inventory levels and projected demand for component E. The MRP table is then filled in based on this information, showing net requirements, planned order receipts and releases for each component by week over the 7 week planning horizon.

Uploaded by

Abhishree Jain
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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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

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