Question

Problem 12-9

Assume that you are the manager of a shop that assembles power tools. You have just received an order for 60 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

  
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

Answer 1

Information given is as under:

Product structure is shown below:

Component E is required in Component A and Component C.

To derive the MRP for Component E, the MRP of Item Saw, Component A and Component C has to be derived first.

60 units of Chain Saw is to be shipped in beginning of week 8, so it should be ready by end of week 7. Hence the gross requirement is 60 in Week 7.

Item: Saw LT = 2 wk.	Beg. Inv.	1	2	3	4	5	6	7	8
Gross requirements		0	0	0	0	0	0	60	0
Scheduled receipts		0	0	0	0	0	0	0	0
Projected on hand	15	15	15	15	15	15	15	0	0
Net requirements		0	0	0	0	0	0	45	0
Planned order receipt		0	0	0	0	0	0	45	0
Planned order release		0	0	0	0	45	0	0	0
Item: A LT = 1 wk.	Beg. Inv.	1	2	3	4	5	6	7	8
Gross requirements		0	0	0	0	90	0	0	0
Scheduled receipts		0	0	0	0	0	0	0	0
Projected on hand	10	10	10	10	10	0	0	0	0
Net requirements		0	0	0	0	80	0	0	0
Planned order receipt		0	0	0	0	80	0	0	0
Planned order release		0	0	0	80	0	0	0	0
Item: C LT = 2 wk.	Beg. Inv.	1	2	3	4	5	6	7	8
Gross requirements		0	0	0	0	180	0	0	0
Scheduled receipts		0	0	0	0	0	0	0	0
Projected on hand	65	65	65	65	65	0	0	0	0
Net requirements		0	0	0	0	115	0	0	0
Planned order receipt		0	0	0	0	115	0	0	0
Planned order release		0	0	115	0	0	0	0	0
Therefore the MRP of Item E is as shown below:
Item: E(3) & E(2) LT = 1 wk.	Beg. Inv.	1	2	3	4	5	6	7	8
Gross requirements		0	0	230	240	0	0	0	0
Scheduled receipts		0	0	0	0	0	0	0	0
Projected on hand	10	10	10	0	0	0	0	0	0
Net requirements		0	0	220	240	0	0	0	0
Planned order receipt		0	0	220	240	0	0	0	0
Planned order release		0	220	240	0	0	0	0	0

Excel working is shown below: