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Item: A Week Lot size: 250 Lead time: 2 weeks 1 2 3 4 5 6 7 8 Gross Requirement

ID: 372767 • Letter: I

Question

Item: A

                                                              Week

Lot size: 250

Lead time: 2 weeks

1

2

3

4

5

6

7

8

Gross Requirement

100

150

500

750

600

850

450

600

Scheduled receipt

150

Projected On Hand : 120

20

20

20

20

170

70

120

20

Net requirement

0

0

480

730

580

680

380

480

Planned order release

500

750

750

750

500

500

0

0

Following may be noted:

a)When Gross requirement for any period < ( Projected on hand + Scheduled receipt) for that period:

Projected on hand for period t+1 = Projected on hand for period t + Scheduled receipt for period t+1 - Gross requirement for period t+1

b) When , Gross requirement for period t+1 > ( Projected on hand for period t + Scheduled receipt for period t+1 ) , “Net requirement” triggers in ,

AND

Net requirement for period t+1 = (Gross requirement for t+1 – Projected on hand for period t – Scheduled Receipt for period t+1 )

And

Projected on Hand for period t = Planned order release for period t-2 – Net Requirement for period t

c)Since Lead time = 2 weeks

Net requirement for period t = Planned order release for period t-2

d) It is to be noted that value of Planned order release will be 250 or its multiples ( since lot size is 250 or multiples)

Item: A

                                                              Week

Lot size: 250

Lead time: 2 weeks

1

2

3

4

5

6

7

8

Gross Requirement

100

150

500

750

600

850

450

600

Scheduled receipt

150

Projected On Hand : 120

20

20

20

20

170

70

120

20

Net requirement

0

0

480

730

580

680

380

480

Planned order release

500

750

750

750

500

500

0

0

Explanation / Answer

Complete the following MRP Record for item A. Use the lot for lot (LFL) technique. Week 0 Projected on-hand is 120, lead time is 2 weeks, and the lot size is 250. After completing the table, explain in short sentences how each value (on-hand, POR, etc) was determined week by week from Week 1 through Week 8.

ITEM: A
LT: 2
Lot Size: 250

ITEM: A
LT: 2
Lot Size: 250

                                            Period                                    1 2 3 4 5 6 7 8 Gross requirements 100 150 500 750 600 850 450 600 Scheduled receipts 150 Projected on hand 120 Net requirements Planned order releases