Question

Question 1. How many statements are true? (A) 0 (B) 1 (C) 2 (D) 3 (E) 4

Statement 1. Scheduled receipts are future receipts of past order releases

Statement 2. The MPS contains the GR of the end -item.

Statement 3. The POR is the inventory policy of the MRP

Statement 4. MRP minimizes cost.

Part 2. Questions 2,3,4.

Consider the end-item weekly MRPs for May 1 with Qd missing in each MRP. Match the correct MRP with the proper lot size discipline.

MRP A		5-1	5-8	5-15	5-22	5-29
	GR		125	62	31	20
	SR		45					LT=2
	PSB	200	120	58	27	18		SS=15
	POR			11				Qd= ?
MRP B
	GR		125	62	31	20
	SR		45					LT=2
	PSB	200	120	58	27	17		SS=15
	POR			10				Qd= ?
MRP C
	GR		125	62	31	20
	SR		45					LT=2
	PSB	200	120	58	27	15		SS=15
	POR			8				Qd= ?
MRP D
	GR		125	62	31	20
	SR		45					LT=2
	PSB	200	120	58	27	16		SS=15
	POR			9				Qd= ?

Question 2. For Qd=5, which MRP is correct? (A) MRP A (B) MRP B (C) MRP C (D) MRP D (E) none of the above Question 3. For Qd=9+, which MRP is correct? (A) MRP A (B) MRP B (C) MRP C (D) MRP D (E) none of the above Question 4. For Qd=LFL, which MRP is correct? (A) MRP A (B) MRP B (C) MRP C (D) MRP D (E) none of the above Question 9. Which MRP is incorrect? A. May 1 May 2 May 3 May 4 May 5 GR 32 45 82 94 SR LT=1 PSB 210 178 133 51 32 SS=30 POR 75 Qd=70+ B. May 1 May 2 May 3 May 4 May 5 GR 45 95 125 68 SR LT=1 PSB 220 175 80 30 32 SS=30 POR 70 75 Qd=70+ C. May 1 May 2 May 3 May 4 May 5 GR 59 208 79 74 SR LT=1 PSB 230 171 33 30 30 SS=30 POR 70 76 74 Qd=70+ D. May 1 May 2 May 3 May 4 May 5 GR 62 210 73 2 SR LT=1 PSB 240 178 38 35 33 SS=30 POR 70 70 Qd=70+ E. None of the above

Answer 1

repeat these steps for every period
step 1	IOH=	PSB of last week
step 2	Requirement=	GR-IOH-SR+SS
step 3	NR=	is equal to requirement (if requirement>0) OR 0 (if requirement is negative)
step 4	PR=	in L4L PR=NR	more than or equal to NR in multiples of lot size
step 5	PSB =	IOH+PR-GR-SR
step 6	POR=	Equal to PR according to Lead time

Period		1-May	8-May	15-May	22-May	29-May
	Gross requirements GR	0	130	58	22	17
	Scheduled receipts SR	0	45	0	0	0
Beginning inventory= 190	On hand at the beginning of period IOH	190	190	105	47	25
safety stock, SS=14	Requirement	-176	-91	-33	-11	6
	Net requirements NR	0	0	0	0	6
Q =?	Planned order receipts (PR)	0	0	0	0
	Projected Stock Balance PSB	190	105	47	25
Lead Time LT=2	Planned order releases POR	0	0

Answer 2: MRP C

Q= 5 satisfies this MRP as the 5*2= 10 units will set the POR of 15 May as 10, where net requirement is 6.

Answer 3: MRP A

Q= 9+ satisfies this MRP as the 9 units will set the POR of 15 May as 9 , where net requirement is 6.

Answer 4: MRP D

Q= L4L satisfies this MRP as the 6 units will set the POR of 15 May as 6, where net requirement is 6.