Question

Assume that you are the manager of a shop that assembles power tools. You have just received an order for 59 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws is

Item	Lead Time (weeks)	On Hand	Components
Saw	2	15	A(2), B(1), C(4)
A	1	10	E(3), D(1)
B	2	5	D(2), F(3)
C	2	65	E(2), D(2)
D	1	20
E	1	10
F	2	30

a.	Develop the material requirements plan for component E using lot-for-lot ordering. (Leave no cells blank - be certain to enter "0" wherever required.)

Item: E(3) & E(2) LT = 1 wk.	Beg. Inv.	1	2	3	4	5	6	7	8
Gross requirements
Scheduled receipts
Projected on hand
Net requirements
Planned order receipt
Planned order release

Down below is my results. The numbers in BOLD are INCORRECT.

Item: E(3) & E(2) LT = 1 wk.	Beg. Inv.	1	2	3	4	5	6	7	8
Gross requirements	0	0	0	0	220	234	0	0	0
Scheduled receipts
Projected on hand	10	10	10	10	10	0	0	0	0
Net requirements	0	0	0	0	210	234	0	0	0
Planned order receipt	0	0	0	0	210	234	0	0	0
Planned order release	0	0	0	210	234	0	0	0	0

Answer 1

As per bill of material;

For every unit of A we need 3 units of E; for every unit of C we need 2 unit of E.

Saw is made of 2 units of A and 4 units of C

We will first focus primarily on A and C MRP to final total gross requirement for E.

Total 59 chain saws are needed by end of week 7

We will first create MRP plan for A and C as below:

Saw has 2 weeks lead time and needed by week 8 hence gross requirement for C will be in week 6. 2 units of A is required for each Saw. Already 15 units of Saw on hand so net requirement for Saw is 59-15=44
Item: A Lead time: 1week	Beg. Inv.	1	2	3	4	5	6	7	8
Gross requirements							(59-15)*2=88
Scheduled receipts
Projected on hand	10	10	10	10	10	10	78+10-88=0
Net requirements							88-10=78
Planned order receipt							78
Planned order release						78
Saw has 2 weeks lead time and needed by week 8 hence gross requirement for C will be in week 6. 4 units of C is required for each Saw
Item: C Lead time: 2 weeks	Beg. Inv.	1	2	3	4	5	6	7	8
Gross requirements							(59-15)*4=176
Scheduled receipts
Projected on hand	65	65	65	65	65	65	111+65-176=0
Net requirements							176-65=111
Planned order receipt							111
Planned order release					111

For every unit of A we need 3 units of E; for every unit of C we need 2 unit of E.

Now, basis above the gross requirement for E is 3*78=234 in week 5 and 2*111=222 in week 4.

MRP for item E is below

Item: E(3) & E(2) LT = 1 wk.	Beg. Inv.	1	2	3	4	5	6	7	8
Gross requirements					2*111=222	3*78=234
Scheduled receipts
Projected on hand	10	10	10	10	212+10-222=0	0
Net requirements					222-10=212	234
Planned order receipt					212	234
Planned order release				212	234

Change BOLD figures (210) with 212 to get the correct answer.

  
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