Question
Product A is an end item and is made from three units of B, four units of C and two units of D. B is
Product A is an end item and is made from three units of B, four units of C and two units of D. B is made of three units of E and two of F. C is made of two units of F and one of D. A and B have a lead time of one week. C and D have lead times of two weeks, and E and F have lead times of three weeks. Lot sizes for A, B and D are L4L. Item C has a lot size of 60. E and F have a lot size of 100. There is 40 units of item B on hand, and 20 units of item A. There is a scheduled receipt for 50 units of item F in week three. If 120 units of A are required in Week 8, develop the MRP planning schedule, specifying when items are to be ordered and received.
If 120 units of A are required in Week 8, develop the MRP planning schedule, specifying when items are to be ordered and received.
1. Product A (Lot-for-Lot):
- This is the final product or end item.
- It is made up of three subcomponents: B, C, and D.
- The lot-for-lot notation indicates that the lot size for Product A is determined based on its net requirements for each period.
2. Component B (Lot-for-Lot):
- A subcomponent of Product A.
- It is made up of two subcomponents: E and F.
- The lot-for-lot notation again means that the lot size for B is equal to its net requirements.
3. Component C (Lot size: 60):
- Another subcomponent of Product A.
- It is made up of two subcomponents: F and D.
- Unlike B, the lot size for C is specified as 60, meaning that in each production run, 60 units of C are produced.
4. Component D (Lot-for-Lot):
- A subcomponent of Product A.
- There is no specified lot size, so it follows a lot-for-lot production strategy.
5. Component E (Lot size: 100):
- A subcomponent of B.
- The lot size for E is specified as 100 units.
6. Component F (Lot size: 100):
- A subcomponent of both B and C.
- The lot size for F is specified as 100 units.
The representation essentially shows the structure of how Product A is built from its subcomponents, and it includes the lot sizes for each item. For items with a lot-for-lot strategy, the production quantity is determined by the net requirements for that period. For items with specified lot sizes, the same quantity is produced in each production run.
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