We have created the following Planned Production Orders over the planning period: $140$ Product A We have the following Raw Materials on hand and available to be dedicated to these Planned Production Orders: Enough Raw Materials to product $80$ Product $A$

There are Purchase Orders at our suppliers for the following Raw Materials: $30$ Product A

How many products should we order on New Purchase Orders with our suppliers?

Simplified MRP Calculations

$PP=mam(0,FC-FG-RP)$

$P{O}_{\text{n}\text{e}\text{w}}=mam(0,PP-R{M}_{\text{a}\text{v}\text{a}\text{i}\text{l}\text{a}\text{b}\text{l}\text{e}}-SR)$

$PP=$ Planned Production Orders

Requests for additional finished goods to be produced

$FC=$ Forecast for Finished Goods Requirements

Requirements or anticipated requirements over the planning period

$FG=$ Finished Goods Currently On$-$Hand

$RP=$ Released Production

Production orders that have been released to the production process

$P{O}_{\text{n}\text{e}\text{w}}=$ New Purchase Orders for Raw Materials that will be needed

$R{M}_{\text{a}\text{v}\text{a}\text{i}\text{l}\text{a}\text{b}\text{l}\text{e}}=$ Raw Materials that are not currently dedicated to Released Production Orders

$SR=$ Scheduled Receipts

Orders for raw materials that have been ordered, but have not yet arrived