The following time-phasing chart is available for a single item within a MRP sys

Question

The following time-phasing chart is available for a single item within a MRP system. Complete this chart by estimating inventory on hand and planned order release values. Lead time is 2 weeks and order policy is 100 units, which means this part can be ordered only in 100-unit batches. Inventory replenishment is JIT, lead times are negligible.

Week Number

1

2

3

4

5

6

7

8

9

10

Gross Requirements

80

95

110

50

Schedule Receipt

100

Inventory on Hand

Planned order Release

Week Number

1

2

3

4

5

6

7

8

9

10

Gross Requirements

80

95

110

50

Schedule Receipt

100

Inventory on Hand

Planned order Release

Explanation / Answer

Week Number

Week Number

1 2 3 4 5 6 7 8 9 10 Gross Requirements 0 0 80 95 0 110 0 0 50 0 Schedule Receipt 100 0 0 100 0 100 0 0 100 0 Inventory on Hand 100 100 20 25 25 15 15 15 65 65 Planned order Release 0 100 0 100 0 0 100 0 0 0 Lead Time = 2 weeks

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