Material Requirements Planning
Practice problems
1) A partially completed inventory record for the motor subassembly is shown in the figure.
(a) Complete the rows of the record by using the L4L rule.
(b) Complete the rows of the record by using the POQ with P = 2
(c) Complete the rows of the record by using the POQ with P = 4
(d) If it costs a company $1 to hold a unit in inventory from one week to the next, and
the cost to release an order is $50, which of the lot-sizing rules used above will
provide the lowest holding + ordering cost?
Item GF-4 Order Policy
Lead time 2 weeks
Week
1 2 3 4 5 6 7 8 9 10
Gross requirement 80 50 35 20 55 15 30 25 10
Scheduled receipts 60
On-hand inventory (20 units)
Net requirement
Planned receipts
Planned order release
2) A manufacturing organization needs to plan the materials plan the materials required for the
next six weeks for the manufacture of its end-product (Product A), as per a MPS. In addition
to the end product, there is an independent requirement of Component C, as it is sold as a
spare in the market. The MPS for both the end products and spares are given in the table. In
order to assemble one unit of Product A, components B to G are required. An extract of
inventory status reveals the inventory on hand. There are no pending orders for delivery.
Different lot-sizing rules are used for the components of Product A. Moreover, the
components have different lead times. All this information is available in the table. Perform
an MRP exercise to estimate the quantity and timing of the components required for the
manufacture of Product A as per the MPS.
3) The BOMs for products A and B and data from the inventory records are shown in Figure
11.41. Data from the inventory records are shown in Table 11. 10. In the MPS for Product A,
the MPS start row has 85 units in week2 and 200 units in week 4 and 50 in week 8. In the
MPS for product B, the MPS start row has 65 units in week 3 and 50 units in week 4 and 50
in week 5 and 75 in week 8.
a) Develop MRP for next six weeks for items C, D and E
b) What specific managerial actions are required in week 1?
C(2) D (1) E(4)
C (1) D(2)
Item
C D E
Lot-sizing rule L4l FOQ=200 POQ=2 weeks
Lead time 2 weeks 1 week 1 week
Scheduled receipts 200 (week 3) 0 0
Beginning inventory 0 0 200
4) Given the product structure diagram, and the data given, complete the MRP records for
parts A, B and C.
C (1) B (2)
C (1)
Week
Items 1 2 3 4 5 6
A Gross requirement 5 15 18 8 12 22
LT = 1 week Scheduled receipts
On-hand = 21 On-hand inventory
Safety stock=0 Net requirement
Order quantity = 20 Planned receipts
Planned order release
B Gross requirement
LT = 2 weeks Scheduled receipts 32
On-hand = 20 On-hand inventory
Safety stock = 0 Net requirement
Order quantity = 40 Planned receipts
Planned order release
C Gross requirement
LT = 1 week Scheduled receipts
on-hand = 70 On-hand inventory
Safety stock = 10 Net requirement
Order quantity = L4L Planned receipts
Planned order release
