Question

Assume that Product Z is made of two units of A and three units of B. A is made of three units of C and four of D. D is made of two units of E.

Lead times for purchase or fabrication of each unit to final assembly are: Z takes two weeks; A, B, C, and D take one week each; and E takes three weeks.

Fifty five units OF Product Z are required in Period 10. (Assume that there is currently no inventory on hand of any of these items.)

b. Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates. (Leave no cells blank - be certain to enter "0" wherever required.)

Period		1	2	3	4	5	6	7	8	9	10
Item Z   OH = 0   LT = 2   SS = 0   Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item A   OH = 0   LT = 1   SS = 0   Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item B   OH = 0   LT = 1   SS = 0   Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item C   OH = 0   LT = 1   SS = 0   Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item D   OH = 0   LT = 1   SS = 0   Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases
Item E   OH = 0   LT = 3   SS = 0   Q = L4L	Gross requirements
	Scheduled receipts
	Projected available balance
	Net requirements
	Planned order receipts
	Planned order releases

Answer 1

Quantity of Z required in Period 10 = 55

Quantity of B Required for 55 units of Z= 55 *3 =165

Quantity of A Required for 55 units of Z=55 *2=110

Quantity of C Required for 110 units of A= 110 *3=330

Quantity of D Required for 110 units of A=110*4=440

Quantity of E Required for 440 units of D=440*2=880

• Here we need qty 55 of Z in period 10, the lead time is two periods, we had zero in on-hand inventory and scheduled receipts, hence the net requirements is 55. So, we release order in period 8 so that we get it on time on period 10
• But Z requires subpart A and B. if we have required quantities of A and B on Period 8 then only we can get Required quantities of Z in period 10. Hence we need 110 units of A and 165 units of B in period 8. As both of them also had zero on-hand inventory with no scheduled receipts, Lead time of one period, So we can release planned order in week 7 so that we can get it by week 8 to process fro Z.
• Similarly, Rest all subparts planned order releases are shown in tables.

For ease of copying excel, tables are given below

ITEM Z	1	2	3	4	5	6	7	8	9	10
ON HAND	0	Gross Requirements	0	0	0	0	0	0	0	0	0	55
LEAD TIME	2 PERIOD	Schedule Receipts	0	0	0	0	0	0	0	0	0	0
SAFTEY STOCK	0	Projected available balance	0	0	0	0	0	0	0	0	0	0
Q	L4L	Net Requirements	0	0	0	0	0	0	0	0	0	55
		Planned order Receipts	0	0	0	0	0	0	0	0	0	55
		Planned order Releases	0	0	0	0	0	0	0	55	0	0
ITEM B	1	2	3	4	5	6	7	8	9	10
ON HAND	0	Gross Requirements	0	0	0	0	0	0	0	165	0	0
LEAD TIME	1 PERIOD	Schedule Receipts	0	0	0	0	0	0	0	0	0	0
SAFTEY STOCK	0	Projected available balance	0	0	0	0	0	0	0	0	0	0
Q	L4L	Net Requirements	0	0	0	0	0	0	0	165	0	0
		Planned order Receipts	0	0	0	0	0	0	0	165	0	0
		Planned order Releases	0	0	0	0	0	0	165	0	0	0
ITEM A	1	2	3	4	5	6	7	8	9	10
ON HAND	0	Gross Requirements	0	0	0	0	0	0	0	110	0	0
LEAD TIME	1 PERIOD	Schedule Receipts	0	0	0	0	0	0	0	0	0	0
SAFTEY STOCK	0	Projected available balance	0	0	0	0	0	0	0	0	0	0
Q	L4L	Net Requirements	0	0	0	0	0	0	0	110	0	0
		Planned order Receipts	0	0	0	0	0	0	0	110	0	0
		Planned order Releases	0	0	0	0	0	0	110	0	0	0
ITEM C	1	2	3	4	5	6	7	8	9	10
ON HAND	0	Gross Requirements	0	0	0	0	0	0	330	0	0	0
LEAD TIME	1 PERIOD	Schedule Receipts	0	0	0	0	0	0	0	0	0	0
SAFTEY STOCK	0	Projected available balance	0	0	0	0	0	0	0	0	0	0
Q	L4L	Net Requirements	0	0	0	0	0	0	330	0	0	0
		Planned order Receipts	0	0	0	0	0	0	330	0	0	0
		Planned order Releases	0	0	0	0	0	330	0	0	0	0
ITEM D	1	2	3	4	5	6	7	8	9	10
ON HAND	0	Gross Requirements	0	0	0	0	0	0	440	0	0	0
LEAD TIME	1 PERIOD	Schedule Recipts	0	0	0	0	0	0	0	0	0	0
SAFTEY STOCK	0	Projected avalbl balance	0	0	0	0	0	0	0	0	0	0
Q	L4L	Net Requirements	0	0	0	0	0	0	440	0	0	0
		Planned order Receipts	0	0	0	0	0	0	440	0	0	0
		Planned order Releases	0	0	0	0	0	440	0	0	0	0
ITEM E	1	2	3	4	5	6	7	8	9	10
ON HAND	0	Gross Requirements	0	0	0	0	0	880	0	0	0	0
LEAD TIME	3 PERIOD	Schedule Receipts	0	0	0	0	0	0	0	0	0	0
SAFTEY STOCK	0	Projected available balance	0	0	0	0	0	0	0	0	0	0
Q	L4L	Net Requirements	0	0	0	0	0	880	0	0	0	0
		Planned order Receipts	0	0	0	0	0	880	0	0	0	0
		Planned order Releases	0	0	880	0	0	0	0	0	0	0