Question 5: The following figure shows the product structure tree of product A. D (2) B (2) A E (1) C (1) (3) The company requires 200 units of product A in period 8 and 150 units in period 6. The on hand inventory for products A, B, C, D and E are 50, 150, 40, 100, 70 respectively. The lead times for products A, B, C, D and E are 1, 0, 2, 1, 1. Develop the MRP and specify gross and net requirements, projected on-hand, planned order receipts, and planned order release for all the products. Assume we use lot-for-lot ordering for all the products and not safety stock is required. Item A Item B Item C Week Number 1 2 3 4 5 6 7 8 Quantity 150 200 Gross requirements 0 0 0 0 0 150 0 200 Scheduled receipts Quantity = Projected on hand 50 50 50 50 50 50 0 0 LT= 1 Net requirements 0 0 0 0 0 100 200 Lot Size = Planned-order receipts 0 0 0 0 0 100 0 200 On hand = 50 Planned-order releases 0 0 0 0 100 0 200 Gross requirements 0 0 0 0 200 0 400 0 Item D Scheduled receipts Quantity = 2 Projected on hand 150 150 150 150 150 0 0 LT= 0 Net requirements 0 Lot Size = Planned-order receipts 0 On hand = 150 Planned-order releases 0 000 000 0 0 0 0 400 0 400 0 400 O o O 0 0 0 0 Gross requirements 0 0 0 0 150 0 1200 0 Scheduled receipts Quantity = LT= 3 Projected on hand 100 100 100 100 100 1 Net requirements 0 0 0 50 Lot Size = Planned-order receipts 0 0 0 0 50 On hand = 100 Planned-order releases 0 0 0 0 50 0000 0 1200 0 0 1200 0 1200 0 Gross requirements 0 0 0 0 50 0 400 0 Item E Gross requirements 0 0 0 0 50 0 1200 0 Scheduled receipts Scheduled receipts Quantity = 1 Projected on hand 40 40 40 40 40 0 0 0 LT= 2 Net requirements 0 0 0 0 10 0 400 0 Quantity = LT= 1 Projected on hand 70 70 70 70 70 20 20 0 1 Net requirements 0 0 0 0 0 0 1180 0 Lot Size = Planned-order receipts 0 0 0 10 0 400 0 Lot Size = Planned-order receipts 0 0 0 0 0 1180 0 On hand = 40 Planned-order releases 0 0 10 0 400 0 On hand = 70 Planned-order releases 0 0 0 0 1180 0