Answered Essay: Assume that Product Z is made of two units of A and three units of B. A is made of three units of C and

Assume that Product Z is made of two units of A and three units of B. A is made of three units of C and four of D. D is made of two units of E

Lead times for purchase or fabrication of each unit to final assembly are: Z takes two weeks; A, B, C, and D take one week each; and E takes three weeks.

Sixty eight units of Product Z are required in Period 10. (Assume that there is currently no inventory on hand of any of these items.)

b. Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates. (Leave no cells blank – be certain to enter “0” wherever required.)

Period 1 2 3 4 5 6 7 8 9 10
Item Z
OH = 0
LT = 2
SS = 0
Q = L4L
Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order receipts
Planned order releases
Item A
OH = 0
LT = 1
SS = 0
Q = L4L
Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order receipts
Planned order releases
Item B
OH = 0
LT = 1
SS = 0
Q = L4L
Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order receipts
Planned order releases
Item C
OH = 0
LT = 1
SS = 0
Q = L4L
Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order receipts
Planned order releases
Item D
OH = 0
LT = 1
SS = 0
Q = L4L
Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order receipts
Planned order releases
Item E
OH = 0
LT = 3
SS = 0
Q = L4L
Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order receipts
Planned order releases

Expert Answer

The Product structure tree for the Product Z is given as follows:

The MRP schedule for all items are as shown below:

Period 1 2 3 4 5 6 7 8 9 10
Item Z Gross requirements 68
OH = 0 Scheduled receipts 0
LT = 2 Projected available balance 0
SS = 0 Net requirements 68
Q = L4L Planned order receipts 68
Planned order releases 68
One unit of Z requires 2 units of A
Item A Gross requirements 136
OH = 0 Scheduled receipts 0
LT = 1 Projected available balance 0
SS = 0 Net requirements 136
Q = L4L Planned order receipts 136
Planned order releases 136
One unit of Z requires 3 units of B
Item B Gross requirements 204
OH = 0 Scheduled receipts 0
LT = 1 Projected available balance 0
SS = 0 Net requirements 204
Q = L4L Planned order receipts 204
Planned order releases 204
One unit of A requires 3 units of C
Item C Gross requirements 408
OH = 0 Scheduled receipts 0
LT = 1 Projected available balance 0
SS = 0 Net requirements 408
Q = L4L Planned order receipts 408
Planned order releases 408
One unit of A requires 4 units of D
Item D Gross requirements 544
OH = 0 Scheduled receipts 0
LT = 1 Projected available balance 0
SS = 0 Net requirements 544
Q = L4L Planned order receipts 544
Planned order releases 544
One unit of D requires 2 units of E
Item E Gross requirements 1088
OH = 0 Scheduled receipts 0
LT = 3 Projected available balance 0
SS = 0 Net requirements 1088
Q = L4L Planned order receipts 1088
Planned order releases 1088

Planned Order releases schedule for each item:

Period 1 2 3 4 5 6 7 8 9 10
Item Z 68
Item A 136
Item B 204
Item C 408
Item D 544
Item E 1088

 

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