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:

**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.**Calculate the net requirements**by taking into account the on-hand inventory and scheduled receipts.**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.