SC 5
SC 5
SC 5
End
Item Lead Time: 1 week
(1)
(a)
For 40 units of end item, 80 units of L are needed, 40 units of C are needed and 120 units of K
are needed.
10 units of L, 15 units of C, 20 units of K are already on hand.
So, units of L needed = (80-10) units = 70 units
Units of C needed = (40-15) units = 25 units
Units of K needed = (120-20) units = 100 units
For 70 units of L, Amount of B needed = (2 x 70) = 140 units
For 25 units of C, Amount of B needed = (2 x 25) = 50 units
For 100 units of K, Amount of B needed = (2 x 100) = 200 units
Total amount of B needed = (140 + 50 + 200) units = 390 units
Units already in hand are 30.
Additional units of B needed = (390-30) units = 360 units
(b)
Lead time for end item is 1 week. So, order must be placed at a start of 7 th week considering only
this level.
Lead time for L is 2 weeks, lead time for C is 3 weeks and Lead time for K is 3 weeks. So,
considering this level orders must be placed at latest at the start of week 4.
Lead time for B is 2 weeks, G is 3 weeks, J is 3 weeks and H is 2 weeks. So, here orders must be
placed at latest at the start of week 1 to ensure timely production of L and C since their direct
components take a lead time of 3 weeks.
So, the order must be placed at the start of Week 1 in order to ship end item at the start of
Week 8.
Given,
Required units = Z = 120 units at the beginning of week Z
On hand, Z= 40 units, A= 70 units, B= 100 units, C= 30 units.
20 units of scheduled receipt of C should be there in week 4.
MRP chart for Z
ITEM Z Beginning 1 2 3 4 5 6 7
inventory
Gross 120
Requirement
On hand- 40
Scheduled
receipt
Balance 40 40 40 40 40 40 40 -
Net 80
requirements
Planned order 80
receipt
Planned order 80
release
Scheduled
receipt
Balance 70 70 70 70 70 70 0 0
Net 90
requirements
Planned 90
order receipt
Planned 90
order release
MRP chart for B
ITEM B Beginning 1 2 3 4 5 6 7
inventory
Gross 320
Requirement
On hand-
100
Scheduled
receipt
Balance 100 100 100 100 100 100 0 0
Net 220
requirements
Planned 220
order receipt
Planned 220
order release
Given,
Required units = E = 95 units at the beginning of week 7
On hand, E= 5 units, B= 50 units, C=100 units, D=80 units.
30 units of C have been outsourced and should arrive in week four.
Given that,
Master 1 2 3 4 5 6 7
Schedule/Da
y
Quantity 0 0 0 100 150 0 200
Table/ week 1 2 3 4 5 6 7
Gross 100 150 200
Requirements
Scheduled
receipt
On hand
inventory
Net 100 150 200
requirements
Planned 100 150 200
order receipts
Planned 100 150 200
order release
(lot for lot)
Planned order release for wood sections calculations from MPS of table are below
Wood 1 2 3 4 5 6 7
section/week
Gross 200 300 400
Requirements
Scheduled 100
receipts
On hand 100 100
inventory
Net 100 300 400
requirements
(LOL)
Planned order 100 300 400
recipts
Planned order release for braces calculations from MPS of table are below
Braces/week 1 2 3 4 5 6 7
Gross 300 450 600
requirements
Scheduled
receipts
On hand 60 60 60 60
inventory-60
Net 240 450 600
requirements
(LOL
Planned order 240 450 600
receipts
Planned order 240 450 600
release (lot for
lot)
Calculation process of the planned order release for component legs are below:
Step 1: Calculate the gross requirements for legs from the table's MPS (master production
schedule) by multiplying the table's production schedule by a (since four quantities of legs are
required to make one end item).
Step 2: now. Subtract on-hand inventory and any scheduled receipts from gross requirements to
arrive at net requirements. Legs are available in quantities of 120. In week 3, 10% of safety stock
will be 26 units added as safety stock.
Step 3: Phase back the net requirements for two periods for orders above 201-550 (lead time is
two weeks) and three weeks for orders over 550 units (lead time is three weeks) in order to
acquire the time phased net requirements and production schedule.
Planned order release for braces calculations from MPS of table are below
Braces/week 1 2 3 4 5 6 7
Gross 400 600 800
requirements
Scheduled
receipts
On hand 120 120 120 120
inventory-120
Net 280 600 800
requirements
(LOL)+10%
Planned order 280 600 800
receipts
Planned order 880 800
release (lot for
lot)
7 No Question Answer
Here is MPS for end item X –
Item X 1 2 3 4 5 6 7 8
Gross 80 30
requirements
Scheduled
receipts
On hand
inventory
Net 80 30
requirements
Planned 80 30
order
receipts
Planned 80 30
order release
Component 1 2 3 4 5 6 7 8
B
Gross 160 60
requirements
Scheduled
receipts
On hand 30 30 30 30 30
inventory
(30)
Net 130 60
requirements
Planned 130 60
order
receipts
Planned 130 60
order release
Component 1 2 3 4 5 6 7 8
D
Scheduled 50 50 50 50
receipts
On hand 70 70 120 10 60 20 50 10
inventory
(20)
Item A 1 2 3 4 5 6
(LT: 1 week)
Gross 40
requirement
s
Scheduled
receipts
On hand
inventory
Net 40
requirement
s
Planned 40
order
receipts
Planned 40
order release
Item B (LT: 1 1 2 3 4 5 6
week)
Gross 60
requirements
Scheduled
receipts
On hand 10 10 10 10 10
inventory (10)
Net 50
requirements
Planned order 50
receipts
Planned order 50
release
Item C (LT: 1 2 3 4 5 6
2 weeks)
Gross 30
requirements
Scheduled
receipts
On hand 10 10 10 10 10 10
inventory
(10)
Net 20
requirements
Planned 20
order
receipts
Planned 20
order release
Item D (LT: 1 2 3 4 5 6
1 week)
Gross 40 180
requirements
Scheduled 100
receipts
On hand 25 125 125 85 5 5
inventory
(25)
Net 95
requirements
Planned 100
order
receipts
Planned 100
order release
(a)
Saw
Master schedule
Beginnin 1 2 3 4 5 6 7 8
g
Week
Number
Inventory
Quantity 50
Week 1 2 3 4 5 6 7 8
Gross 50
Requirements
Scheduled
Receipts
Projects On 15 15 15 15 15 15 15 0
Hand
Net 35
requirements
Planned 35
order receipts
Planned 35
order releases
Week 1 2 3 4 5 6 7 8
Gross 70
Requirements
Scheduled
Receipts
Projects On 10 10 10 10 10 10 0
Hand
Net 60
requirements
Planned 60
order receipts
Planned 60
order releases
Week 1 2 3 4 5 6 7 8
Gross 140
Requirement
s
Scheduled
Receipts
Projects On 65 65 65 65 65 65 0
Hand
Net 75
requirements
Planned 75
order receipts
Planned 75
order releases
Week 1 2 3 4 5 6 7 8
Scheduled
Receipts
Projects On 10 10 10 0 0
Hand
Product R
E F G (2) H
Product
R
Week 1 2 3 4 5 6 7
Lead Gross 40
Time
Requirement
=2
s
On Scheduled
hand = Receipts
10
SS= 0 Projects On 10 10 10 10 10 10 0
Hand
Q= L4L Net 30
requirements
Planned 30
order receipts
Planned 30
order releases
The gross requirement of C is 3 times the planned order release of as R. The output is mentioned
below:-
Product
C
Week 1 2 3 4 5 6 7
Lead Gross 90
Time
Requirements
=2
On Scheduled
hand = Receipts
10
SS= 0 Projects On 20 20 20 20 20
Hand
Q= L4L Net 70
requirements
Planned 70
order receipts
Planned 70
order releases
The gross requirements for G are 2 times the planned order release of C and 1 time the planned
order release of R. The on hand inventory for G is 15 units & G is ordered in multiples of 80
units. –
Product
G
Lead Week 1 2 3 4 5 6 7
Time
=2
On Gross 140 30
hand =
requirements
10
SS= 0 Scheduled
Receipts
Q=L4L Projects On 15 15 15 15 35 5 5
Hand
Net 125
requirements
Planned 160
order
receipts
Planned 160
order
releases
So, we can say that, in order to fulfill the orders of 40 units 160 units of subassembly G should
be ordered in week 2.
M(3) I (2)
(a)
Quantity 120
Item-e: There is no inventory on hand, the net and gross requirements are equal, item E has a
lead time of one week, and the product must arrive the week before the requirement week.
Time=1 1 2 3 4 5 6 7 8
Projected on hand
Item-I: Gross requirement I is twice E because each E uses two I. these must be available at the
start of week 4. The net requirement is 200 since there is an on-hand inventory of 40 units due to
schedule receipts for week 3. The lead time is one week.
Lead time=1 1 2 3 4 5 6 7 8
Projected on hand 40 40
Scheduled receipts 40
Item-n: Since I have four times as many Ns as I have, the gross need for N is 200*4=800. These
have to be accessible at the start of week three. Due to the schedule for week three and the lead
time of week one, the net requirement is 700 and there is an inventory of 100 units on hand.
Gross 800
requirement
Schedule receipts
Item-v: Because each I only utilize one V, the gross need for V is equal to I. things need to be
accessible at the beginning of week three. Since 10 units are expected to be received in week
three, there is no requirement of 190 units. There is a two-week lead time.
Project on hand
(b)
First, need to create a master production schedule using the following information at the bottom
was given
quantit 100 55
y
Item- E: Gross requirement to the master production schedule. Because there is no on-hand
inventory, yet requirement is also equal to the gross requirement. Lead time for item E is one-
week order has to be released before one week from the requirement week.
Projected on hand
Item -I: gross requirement for I is twice E because each E uses two I. these must be the start of
week-4 and week-6. No requirement is 160 since there is an on-hand inventory of 40 units due to
schedule receipts in week-3. Lead time is 1 week.
Lead time= 1 week 1 2 3 4 5 6 7 8
Project on hand 40 40
Item-N: gross requirement for N is for the time of that (160*4=640) because each I uses four Ns.
These must be available at the start of week-3. Not a requirement of 540 units because there has
an on-hand inventory of 100 units due to schedule receipts in week 3. The lead time is one week.
The order size has to be multiplied by 800, carry unused supply as inventory to next week as
shown in the below table
Lead time= 2 week Beg. 1 2 3 4 5 6 7 8
iv
Schedule receipts
Item -v: gross re requirement for V is equal to me because each I uses only one V. these must be
available at the start of week-3. No requirement in the unit because there is a schedule of 10 units
in week-3. The order size should be multiplied by 200. Carry used inventory to show next week
as shown below
Lead time =2 week 1 2 3 4 5 6 7 8
Schedule receipts 10
(C)
The MRP plan will remain unchanged because it has been presented and the master production
schedule is also changing. (Considering week-1 as elapsed and delivery in week -9 under the
former scheduled)
Here now we will construct a product the tree diagram for a lot chart has a top-level. The next
level is level-1 and the top base level. Level -2 as well gives components of the top and base.
Under the base level there has level-3 and in level 3 we have the body, frame, control, wheel
assemblies and body.
Electronic golf chart
Base
assembly wheel
(b)
The assembly time chart indicates when production should be carried out based on lead times
from different components as specified in the BOM. This procedure makes sure that the
assembly is in place and that everything goes according to plan.
The horizontal line begins during the week that the lead time-aware procurement or manufacture
should start, and the line connects during the week that the components are assembled at the
following higher level of commerce. For instance, because chairs need to be procured in week 6
in order to be supplied in week 8 for assembling the electronic golf chart,
Week
Item 1 2 3 4 5 6 7 8
Golf
Top
Supports
Cover
Base
Motor
Body
Frame
Control
Assembly
Seats
(c)
The following equation and the calculation are used to compute the MRP for all items:
Net requirements = gross requirement – on-hand inventory
Net requirement = 0 own on-hand inventory more than the gross requirement since the inventory
full fills the requirement.
Planned order release = would be equal to the plan order released in consideration of the lead
time.
Planned order release = is the plan amount that is to be ordered to meet the net requirement.
Master requirement for the golf cart for the top and base,
Golf cart 1 2 3 4 5 6 7 8
Gross 200
requirement
Scheduled
receipts
Projected on 0
hand
Net 200
requirements
Planned 200
order
receipts
Planned 200
order release
Top 1 2 3 4 5 6 7 8
Gross 200
requiremen
t
Net 160
requiremen
t
Project on 40 40 40 40 40 40 40 40
hand
Planned 160
order
receipts
Planned 160
order
releases
Scheduled
receipts
base 1 2 3 4 5 6 7 8
Gross 200
requiremen
t
Net 180
requiremen
t
Projected 20 20 20 20 20 20 20 20
on hand
Planned 180
order
receipts
Planned 180
order
releases
J27(4)
X43
640/4= 160
565
(180)
Based on the tree diagram above, the MRP schedule for component J27 is as follows:
Based on the tree diagram above, the MRP schedule for component Y36 is as follows:
Based on the tree diagram above, the MRP schedule for end item 565 is as follows:
Using its MRP, we can now recreate the master schedule for end item 565:
In conclusion, 180 units of end item 565 are required at the start of Week 6 based on the updated
master schedule.
A 1 -
B 3 15
C 1 -
D 1 -
E 1 130
H 1 -
K 1 -
Master Week 1 2 3 4 5 6 7 8
Schedule Quantity 60
Week
1 2 3 4 5 6 7 8
Gross 120
Requirements
Scheduled
Receipts
Projected on 15 15 15 15 15 15 15 0
hand Inventory
(15)
Net 105
Requirements
Week
1 2 3 4 5 6 7 8
Gross 60
Requirements
Scheduled
Receipts
Projected on 0 0 0 0 0 0 0 0
hand Inventory
Net 60
Requirements
Planned Receipts 60
Planned order 60
releases
Week
1 2 3 4 5 6 7 8
Scheduled
Receipts
Net 80 240
Requirements
Week
1 2 3 4 5 6 7 8
Scheduled
Receipts
Projected on 0 50 0 0 0 0 0 0
hand Inventory
(130)