The following information is available for three MPS items:Product A An 80-unit order is to be started in week 3.A 55-unit order is to be started in week 6.Product B A 125-unit order is to be started in week 5.Product C A 60-unit order is to be started in week 4.Develop the material requirements plan for the next 6 weeks for items D, E, and F. The BOMs are shown in Figure 2, and data from the inventory records are shown in Table 0 (Warning: A safety stock requirement applies to item F.Be sure to plan a receipt for any week in which the projected on-hand inventory becomes less than the safety stock.)AD (2)E (1)BD (1)E (2)CD (2)E (2)F (2)F (2)F (2)Figure 2: BOMs for Products A, B, and C

The following information is available for three MPS items:
Product A An 80-unit order is to be started in week 3.
A 55-unit order is to be started in week 6.
Product B A 125-unit order is to be started in week 5.
Product C A 60-unit order is to be started in week 4.
Develop the material requirements plan for the next 6 weeks for items D, E, and F. The BOMs are shown in Figure 2, and data from the inventory records are shown in Table 0 (Warning: A safety stock requirement applies to item F.
Be sure to plan a receipt for any week in which the projected on-hand inventory becomes less than the safety stock.)
A
D (2)
E (1)
B
D (1)
E (2)
C
D (2)
E (2)
F (2)
F (2)
F (2)
Figure 2: BOMs for Products A, B, and C

Table 0: INVENTORY RECORD DATA
ITEM
Data Category D E F
Lot-sizing rule FOQ = 150 L4L POQ (P = 2)
Lead time 3 weeks 1 week 2 weeks
Safety stock 0 0 30
Scheduled receipts 150 (week 3) 120 (week 2) None
Beginning inventory 150 0 100

Answer

To develop a Material Requirements Plan (MRP) for items D, E, and F, we need to follow these steps:

1. Determine the gross requirements for items D, E, and F based on the Bill of Materials (BOM) and the requirements for products A, B, and C.
2. Calculate the net requirements by taking into account the on-hand inventory and scheduled receipts.
3. Determine the planned orders by considering the lead times and lot-sizing rules.

Bill of Materials (BOM) and Requirements:

• Product A: Requires 2 units of D and 1 unit of E
• Product B: Requires 1 unit of D and 2 units of E
• Product C: Requires 2 units of D, 2 units of E, and 2 units of F

Inventory Data and Parameters:

• Item D:
• Lot-sizing rule: FOQ = 150
• Lead time: 3 weeks
• Safety stock: 0
• Scheduled receipts: 150 (week 3)
• Beginning inventory: 150
• Item E:
• Lot-sizing rule: L4L (Lot-for-Lot)
• Lead time: 1 week
• Safety stock: 0
• Scheduled receipts: 120 (week 2)
• Beginning inventory: 0
• Item F:
• Lot-sizing rule: POQ (Periodic Order Quantity, P = 2 weeks)
• Lead time: 2 weeks
• Safety stock: 30
• Scheduled receipts: None
• Beginning inventory: 100

Step-by-Step MRP Calculation:

1. Determine Gross Requirements for D, E, and F:

Week 1:

• Product A: 0
• Product B: 0
• Product C: 0

Week 2:

• Product A: 0
• Product B: 0
• Product C: 0

Week 3:

• Product A: 80 units require 80 * 2 = 160 units of D and 80 * 1 = 80 units of E
• Product B: 0
• Product C: 0

Week 4:

• Product A: 0
• Product B: 0
• Product C: 60 units require 60 * 2 = 120 units of D, 60 * 2 = 120 units of E, and 60 * 2 = 120 units of F

Week 5:

• Product A: 0
• Product B: 125 units require 125 * 1 = 125 units of D and 125 * 2 = 250 units of E
• Product C: 0

Week 6:

• Product A: 55 units require 55 * 2 = 110 units of D and 55 * 1 = 55 units of E
• Product B: 0
• Product C: 0

2. Calculate Net Requirements for D, E, and F:

Item D:

Week	Gross Req	Scheduled Receipts	Beginning Inventory	Net Req	Planned Orders
1	0	0	150	0	0
2	0	0	150	0	0
3	160	150	150	160 – 150 = 10	150 (due to FOQ)
4	120	0	0 (after week 3)	120	150
5	125	0	30 (after week 4)	125 – 30 = 95	150
6	110	0	0 (after week 5)	110	150

Item E:

Week	Gross Req	Scheduled Receipts	Beginning Inventory	Net Req	Planned Orders
1	0	0	0	0	0
2	0	120	120	0	0
3	80	0	120	80 – 120 = 0	0
4	120	0	40 (after week 3)	120 – 40 = 80	80 (L4L)
5	250	0	0 (after week 4)	250	250 (L4L)
6	55	0	0 (after week 5)	55	55 (L4L)

Item F:

Week	Gross Req	Scheduled Receipts	Beginning Inventory	Net Req	Planned Orders
1	0	0	100	0	0
2	0	0	100	0	0
3	0	0	100	0	0
4	120	0	100	120 – 100 = 20	20 (POQ)
5	0	0	100 (after week 4)	0	0
6	0	0	100	0	0

Summary of Planned Orders:

• Item D: Planned orders for weeks 3, 4, 5, and 6 due to FOQ (150 units each time).
• Item E: Planned orders for weeks 4, 5, and 6 due to L4L.
• Item F: Planned order of 20 units in week 4 due to POQ.

This plan ensures that all gross requirements are met while considering inventory levels, scheduled receipts, and lot-sizing rules.