Question

Heather Adams, production manager for a Newfoundland exercise equipment manufacturer needs to schedule an order of 50 items of A which are to be shipped in week 8 and 40 items of B which are to be shipped in week 6. In parenthesis are indicated quantity required for each component. The inventory on hand is for week 1 only. Below is the information about the products.

Item	Lead Time	On Hand Inventory	Components
A	1	10	D(1); F(2)
B	2	20	E(1); F(3)
C	3	10	D(2); E(3)
D	1	15
E	2	5
F	2	20

Develop a net MRP (Material Requirements Plan) for F. show your work.

Answer 1

Net MRP plan for F

Item = F; OH = 20, LT = 2
Week	1	2	3	4	5	6	7	8
Gross requirements	0	0	0	60	0	0	80	0
Scheduled receipts	0	0	0		0	0	0	0
Projected on hand inventory	20	20	20	0	0	0	0	0
Net requirement	0	0	0	40	0	0	80	0
Planned order receipts	0	0	0	40	0	0	80	0
Planned order releases	0	40	0	0	80	0	0	0

Net MRP plan for parent Items A and B

Item = A; OH = 10, LT = 1
Week	1	2	3	4	5	6	7	8
Gross requirements	0	0	0	0	0	0	0	50
Scheduled receipts	0	0	0	0	0	0	0	0
Projected on hand inventory	10	10	10	10	10	10	10	0
Net requirement	0	0	0	0	0	0	0	40
Planned order receipts	0	0	0	0	0	0	0	40
Planned order releases	0	0	0	0	0	0	40	0

Item = B; OH = 20, LT = 2
Week	1	2	3	4	5	6	7	8
Gross requirements	0	0	0	0	0	40	0	0
Scheduled receipts	0	0	0	0	0	0	0	0
Projected on hand inventory	20	20	20	20	20	0	0	0
Net requirement	0	0	0	0	0	20	0	0
Planned order receipts	0	0	0	0	0	20	0	0
Planned order releases	0	0	0	20	0	0	0	0