Problem 3: MRP Based on the BOM tree below and associated table of information f

Question

Problem 3: MRP Based on the BOM tree below and associated table of information from the ERP database, compute the MRP [PN 1000, 2000, 3003, and 3004 only.] based on a requirement for 100 units of PN 1000 in week 10. No other products share the same pert numbers and there are no requirements prior to week 10. There are no scheduled receipts during this period. There are no textbook definition of On Hand Inventory and Safety Stock Order policy is LOT FOR LOT on all PN. 20 points allocations. NOTE: Use the P Safety Stock On Hand Inventory Lead Time (wis) PN 1000 20 70 PN 2000 3001 PN 3000 3001 120 PN3003 PN 3004 Numbers in parenthesis indicate QTY required per parent unit

Explanation / Answer

Answer:

The MRP is calculated based on the given bill of material, on hand quantity, safety stock and lead times for each item.

Total four items to be purchased (PN 3000, 3001,3003, 3004) after subtracting the on hand quantity with keeping the safety stock as it is.

Two items will be assembed at the plant only (PN 1000 & PN 2000).

Safety Stock will be kept as it is as per the definition of safety stock, that safety stock needs to be keep in the plant.

The MRP worked out is as below

Items Unit Quantity Required Quantity (nos.) Safety Stock (Nos.) On Hand (nos.) Net On Hand (nos) Already Ordered (lots) Quantity per Lot Total Order Qty Quantity to be order (Nos.) Lead times (wk) Qty to be order w.r.t. Lots Expected Arrival When Needed PN 1000 1 100 0 25 25 0 0 0 75 1 0 Wk-9 Wk -10 PN 2000 4 300 40 90 50 0 0 0 250 2 0 Wk-7 Wk-9 3001 3 225 30 105 75 0 0 0 150 3 150 Wk-6 Wk-9 PN 3000 2 150 20 70 50 0 0 0 100 1 100 Wk-8 Wk-9 PN 3003 2 500 20 120 100 0 0 0 400 1 400 Wk-6 Wk-7 PN 3004 3 750 30 580 550 0 0 0 200 3 200 Wk-4 Wk-7

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