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MRP Problem Set

The document outlines various problems related to Material Requirements Planning (MRP) for assembling products, including calculating component quantities, creating product structure trees, and developing material requirements plans. It presents scenarios involving different products such as staplers, chain saws, radar detectors, and industrial robots, requiring the reader to analyze lead times, order quantities, and scheduling. The problems emphasize practical applications of MRP concepts in inventory management and production scheduling.

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Alex Ozford
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80 views3 pages

MRP Problem Set

The document outlines various problems related to Material Requirements Planning (MRP) for assembling products, including calculating component quantities, creating product structure trees, and developing material requirements plans. It presents scenarios involving different products such as staplers, chain saws, radar detectors, and industrial robots, requiring the reader to analyze lead times, order quantities, and scheduling. The problems emphasize practical applications of MRP concepts in inventory management and production scheduling.

Uploaded by

Alex Ozford
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MRP Problems

1. (a) Given the following diagram for a product, determine the quantity of each component required to
assemble one unit of the finished product.

(b) Draw a tree diagram for the stapler:

2. The following table lists the components needed to assemble an end item, lead times (LT), and
quantities on hand.

(a) If 20 units of the end item are to be assembled, how many additional units of E are needed?
(Hint: You don't need to develop an MRP plan to determine this.)

(b) An order for the end item is scheduled to be shipped at the start of week 11. What is the latest
week that the order can be started and still be ready to ship on time? (Hint: You don't need to
develop an MRP plan for this part either.)
3. Assume that you are the manager of a shop that assembles power tools. You have just received
an order for 50 chain saws, which are to be shipped at the start of week 8. Pertinent information on
the saws is shown in the table below.

(a) Develop a product structure tree, an assembly time chart, and a master schedule.

(b) Develop the material requirements plan for component E using lot-for-lot ordering.

(c) Suppose now that capacity to produce part E is limited to a maximum of 100 units per period.
Revise the planned-order releases for periods 1 through 4 so that the maximum is not exceeded
in any period, keeping in mind an objective of minimizing carrying costs. The quantities need
not be equal in every period. Note that the gross requirements for E will remain the same.
However, quantities in some of the other rows will change. Determine the new cell values for
those rows.

4. Oh No!, Inc., sells three models of radar detector units. It buys the three basic models (E, F, and G)
from a Japanese manufacturer and adds one, two, or four lights (component D) to further
differentiate the models. D is bought from a domestic producer.

Lead times are one week for all items except C, which is two weeks. There are ample supplies of
the basic units (E, F, and G) on hand. There are also 10 units of B, 10 units of C, and 25 units of D on
hand.

Lot-sizing rules are lot-for-lot ordering for all items except D, which must be ordered in multiples of
100 units. There is a scheduled receipt of 100 units of D in week 1.

The master schedule calls for 40 units of A to be produced in week 4, 60 units of B in week 5, and 30
units of C in week 6. Prepare a material requirements plan for D and its parents.
5. Assume that you are the manager of Assembly, Inc. You have just received an order for 40 units of
an industrial robot, which is to be delivered at the start of week 7 of your schedule. Using the
following information, determine how many units of subassembly G to order and the timing of those
orders, given that subassembly G must be ordered in multiples of 80 units and all other components
are ordered lot-for-lot. Assume that the components are used only for this particular robot.

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