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Material Requirement and Planning for Given Data

Question

A manufacturing plant produces an end-item A, according to the following bill of materials:

The MPS for the end-item A is given in table 1. The manufacturing / assembly lead times, the lot sizing rules, and the current on-hand inventory for all constituting items are given in table 2. There are scheduled receipts for item C at week 1 (100 pieces) and for item D at week 3 (80 pieces).

Table 1: MPS Quantities

MPS Quantities

1

2

3

4

5

6

7

8

9

10

Gross Requirements (Α)

-

30

-

50

-

200

-

120

180

60

 

Table 2: Lead times, lot sizing rules, on-hand inventory

Item

Lead Time

Lot sizing rule

On-hand inventory

A

2 weeks

Lot-for-Lot

40

B

1 week

Lot-for-Lot

20

C

2 weeks

Lot-for-Lot

20

D

3 weeks

Lot-for-Lot

300

 

Determine the material requirement plan (fill the following tables).

 

Item: A

Production Lead Time: 2 weeks

Lot size rule:  Lot-for-Lot

Week No.

1

2

3

4

5

6

7

8

9

10

Gross Requirements

 

 

 

 

 

 

 

 

 

 

Adjusted Scheduled Receipts

 

 

 

 

 

 

 

 

 

 

Projected on-hand       40

 

 

 

 

 

 

 

 

 

 

Net Requirements

 

 

 

 

 

 

 

 

 

 

Planned order receipt

 

 

 

 

 

 

 

 

 

 

Planned order release

 

 

 

 

 

 

 

 

 

 

 

Item: B

Production Lead Time: 1 week

Lot size rule: Lot for Lot

Week No.

1

2

3

4

5

6

7

8

9

10

Gross Requirements

 

 

 

 

 

 

 

 

 

 

Adjusted Scheduled Receipts

 

 

 

 

 

 

 

 

 

 

Projected on-hand       20

 

 

 

 

 

 

 

 

 

 

Net Requirements

 

 

 

 

 

 

 

 

 

 

Planned order receipt

 

 

 

 

 

 

 

 

 

 

Planned order release

 

 

 

 

 

 

 

 

 

 

 

Item: C

Production Lead Time: 2 week

Lot size rule:  Lot-for-Lot

Week No.

1

2

3

4

5

6

7

8

9

10

Gross Requirements

 

 

 

 

 

 

 

 

 

 

Adjusted Scheduled Receipts

 

 

 

 

 

 

 

 

 

 

Projected on-hand     20

 

 

 

 

 

 

 

 

 

 

Net Requirements

 

 

 

 

 

 

 

 

 

 

Planned order receipt

 

 

 

 

 

 

 

 

 

 

Planned order release

 

 

 

 

 

 

 

 

 

 

 

Item: D

Production Lead Time: 3 weeks

Lot size rule: Lot for Lot

Week No.

1

2

3

4

5

6

7

8

9

10

Gross Requirements

 

 

 

 

 

 

 

 

 

 

Adjusted Scheduled Receipts

 

 

 

 

 

 

 

 

 

 

Projected on-hand     300

 

 

 

 

 

 

 

 

 

 

Net Requirements

 

 

 

 

 

 

 

 

 

 

Planned order receipt

 

 

 

 

 

 

 

 

 

 

Planned order release

 

 

 

 

 

 

 

 

 

 

Summary

This question belongs to operations management and discusses about material requirement and planning.

Word count: NA

 

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