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:

  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:

WeekGross ReqScheduled ReceiptsBeginning InventoryNet ReqPlanned Orders
10015000
20015000
3160150150160 – 150 = 10150 (due to FOQ)
412000 (after week 3)120150
5125030 (after week 4)125 – 30 = 95150
611000 (after week 5)110150

Item E:

WeekGross ReqScheduled ReceiptsBeginning InventoryNet ReqPlanned Orders
100000
2012012000
380012080 – 120 = 00
4120040 (after week 3)120 – 40 = 8080 (L4L)
525000 (after week 4)250250 (L4L)
65500 (after week 5)5555 (L4L)

Item F:

WeekGross ReqScheduled ReceiptsBeginning InventoryNet ReqPlanned Orders
10010000
20010000
30010000
41200100120 – 100 = 2020 (POQ)
500100 (after week 4)00
60010000

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.