Question

A table is assembled using three components, as shown in the accompanying product structure tree. The company that makes the table wants to ship 100 units at the beginning of day 4, 150 units at the beginning of day 5, and 200 units at the beginning of day 7. Receipts of 100 wood sections are scheduled at the beginning of day 2. There are 120 legs on hand. An additional 10 percent of the order size on legs is added for safety stock. There are 60 braces on hand with no safety stock requirement for braces. Lead times (in days) for all items are shown in the following table. Prepare a material requirements plan using lot-for-lot ordering.

Can someone verify the data for the legs for me?

Answer 1

There are 120 legs on hand. An additional 10 percent of the order size on legs is added for safety stock

See, here logic is simple but adding 10% will make it look complex but really not.

Whatever the net requirement arises for the particular day, to that you need to add 10% as safety stock.

For example consider there is a requirement of 400 legs on day 3.

You had already on hand inventory of 120 units.

Net requirement is 400-120=280

As mentioned you need to keep 10 percent safety stock=280*0.1=28

Actual Net requirement Including safety stock=280+28=308.

Similarly assume you have gross requirement of 600 units on day 4

You have 0 on hand inventory

Then Net requirement will 600 units

10 percent safety stock =600*0.1=60 units

Actual Net requirement = 600+60 =660 Units.

Similarly in this manner safety stock will be maintained every day.

In other words the simple calculation is we require 100% of requirement and maintain 10%stock. We can directly multiple net requirement 1.1 to obtain actual net requirement including safety stock.(1.1 is because to obtain 110%).

I tried my best to give picture without your complete question that MRP tree and other details, else it may be possible to explain some what more easier and clear

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