Question

Product A is the end item and is made from 3 units of component B and 4 units of component C.

Component B is made from 2 units of component D and 2 units of component E. Component C is made from 2 units of component F. Lead times are as follows: A = 1 weeks, B = 2 weeks, D = 1 week, and E = 1 week.

A) Draw the bill of materials for Product A. (2 points)

B) Develop the MRP schedule for Product A and components B, D, and E only, given the gross requirement of product A. Currently, there are 50 units of B and 70 units of D on hand. No safety stock requirement.

Product A (3 points) L4L	1	2	3	4	5	6	7	8	9	10
Gross requirement					60					200
Scheduled receipts
Available inventory
Net requirement
Planned order receipts
Planned order releases

Component B (3 points) L4L	1	2	3	4	5	6	7	8	9	10
Gross requirement
Scheduled receipts
Available inventory                       50
Net requirement
Planned order receipts
Planned order releases

Component D (3 points) FOQ = 50	1	2	3	4	5	6	7	8	9	10
Gross requirement
Scheduled receipts
Available inventory                   70
Net requirement
Planned order receipts
Planned order releases

Component E (3 points) L4L	1	2	3	4	5	6	7	8	9	10
Gross requirement
Scheduled receipts
Available inventory
Net requirement
Planned order receipts
Planned order releases

Answer 1

(a)

(b)

Note: I have assumed that the 'Available Inventory' figures are ending inventory. However, if the required assumption is beginning inventory, then the entire row of 'Available Inventory' will shift towards the right by one week. So, check the assumption before making entry.