Question:
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
Answer:
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.