Question

The Hunicut and Hallock Corporation makes two versions of the same basic file cabinet, the TOL (Top-of-the-line) five drawer file cabinet and the HQ (High-quality) five drawer filing cabinet. You are reviewing the MRP for the HQ file cabinet. The HQ file cabinet is made up of five drawers with each drawer requiring two bearings, one on each side. Complete the Materials Requirements Plan (MRP) below in order to answer the questions in the quiz.

HQ		1	2	3	4
Gross Requirements		50	0	100	20
Scheduled Receipts		50
Projected Available Balance	22 On-hand
						Net Requirements
Planned Order Receipt
Planned Order Release

Lead Time = 1 period; Safety-stock = 10; Lot-size = multiples of 50

Drawers		1	2	3	4
Gross Requirements
Scheduled Receipts		300	200
Projected Available Balance	35 On-hand
						Net Requirements
Planned Order Receipt
Planned Order Release

Lead Time = 1 period; Safety-stock = 15; Lot-size = multiples of 100

Bearings		1	2	3	4
Gross Requirements				100
Scheduled Receipts		595
Projected Available Balance	20 On-hand
						Net Requirements
Planned Order Receipt
Planned Order Release

Lead Time = 2 periods; Safety-stock = 10; Lot-size ≥ 450

Answer 1

MRP:

Particulars	Period	0	1	2	3	4
HQ OH =22 LT=1 SS=10 Q = Multiples of 50	Gross Requirements	0	50	0	100	20
	Scheduled Receipts	0	50	0	0	0
	Projected On-hand	22	22	22	22	22
	Net Requirements	0	0	0	78	8
	Planned Order Receipts	0	0	0	100	50
	Planned Order Releases	0	0	100	50	0
Drawers OH =35 LT=1 SS=15 Q = Multiples of 100	Gross Requirements	0	0	500	250	0
	Scheduled Receipts	0	300	200	0	0
	Projected On-hand	35	35	335	35	85
	Net Requirements	0	0	0	215	0
	Planned Order Receipts	0	0	0	300	0
	Planned Order Releases	0	0	300	0	0
Bearings OH =20 LT=2 SS=10 Q≥450	Gross Requirements	0	0	600	100	0
	Scheduled Receipts	0	595	0	0	0
	Projected On-hand	20	20	615	15	365
	Net Requirements	0	0	0	85	0
	Planned Order Receipts	0	0	0	450	0
	Planned Order Releases	0	450	0	0	0

   Formula:

          Net requirements = Gross requirements – On hand inventory – Scheduled receipts.