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Given the following data: Usage per Lead Time Beginning Lot Size Item Parent (we

ID: 381099 • Letter: G

Question

Given the following data:

                                             Usage per                 Lead Time             Beginning              Lot Size

               Item                         Parent                   (weeks)                 Inventory                  Rule

               J                           -                                          1                                     0                   L4L

               K                                   8                                 1                                 850                  FOQ = 2,000

               L                                    6                                 1                              1,250                  L4L

The end product J is made from components K and L. The authorized MPS calls for 200 J to be completed in week 3, 300 J to be completed in week 5, and 300 J to be completed in week 6. There is a scheduled receipt of 400 L in week 2.

(a) What are the gross requirements for K and L?

(b) What are the planned orders for K and L?

Explanation / Answer

Gross requirement for J = 200 ( week 3 ) + 300 ( week 5 ) + 300 ( week 6 ) = 800

Hence, gross requirement of K ( @ 8 K per J ) = 800 x 8 = 6400

Gross requirement of L ( @ 6 per J ) = 800 x 6 = 4800

The MRP table for all components are presented below. Blank spaces should be considered as “Zero”

Item: J On hand =0

                                                              Week

Lot size: Lot for Lot

Lead time: 1 week

1

2

3

4

5

6

Gross Requirement

200

300

300

Scheduled receipt

On hand inventory

Net requirement

200

0

300

500

Planned order receipt

200

0

300

500

Planned order release

200

0

300

500

0

Item: K, On hand= 850

                                                              Week

Lot size: 2000

Lead time: 1 weeks

1

2

3

4

5

6

Gross Requirement

1600

2400

4000

Scheduled receipt

On hand inventory

850

0

1250

0

0

850

Net requirement

0

750

0

1150

0

0

Planned order receipt

0

2000

0

2000

4000

0

Planned order release

2000

0

2000

4000

0

0

Item: L , On hand= 1250

                                                              Week

Lot size: Lot for Lot (L4L)

Lead time: 1 weeks

1

2

3

4

5

6

Gross Requirement

1200

1800

3000

Scheduled receipt

200

On hand inventory

1250

250

250

0

0

Net requirement

0

0

0

1550

3000

Planned order receipt

0

0

0

1550

3000

Planned order release

0

0

1550

3000

0

Item: J On hand =0

                                                              Week

Lot size: Lot for Lot

Lead time: 1 week

1

2

3

4

5

6

Gross Requirement

200

300

300

Scheduled receipt

On hand inventory

Net requirement

200

0

300

500

Planned order receipt

200

0

300

500

Planned order release

200

0

300

500

0

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