MRP Assignment Answers

The following product structure tree indicates the components needed to assemble one unit of product W. Determine
the quantities of each component needed to assemble 100 units of W.
End item P is composed of three subassemblies, K,L and W. K is assembled using 3 Gs and 4 Hs, L is made of 2 Ms, and 2
Ns, and W is made of 3 Zs. On hand inventories are 20 Ls, 40 Gs, and 200 Hs. Scheduled receipts are 10 Ks at the start of
week 3, 30Ks at the start of week 6, and 200Ws at the start of week 3. One Hundred Ps will be shipped at week 6, and
another at week 7. Lead times are 2 weeks for subassemblies and 1 week for G, H, M. Final assembly of P requires 1
week. Develop each of the following:

a) Bill of Materials

b) Master schedule for P

c) Develop the MRP Tables for items P, K, G and H.

a) Product Structure Tree / Bill of Material

K L W

3G 4H 2M 2N 3Z

b)
Beg.
Weeks 1 2 3 4 5 6 7
Master Inv.
Schedule
Quantity 100 100
c)

Beg.
P LT = 1 wk. 1 2 3 4 5 6 7
Inv.
Gross requirements 100 100
Scheduled receipts
Projected on hand
Net requirements 100 100
Planned-order receipts 100 100
Planned-order releases 100 100

Beg.
K LT = 2 wk. 1 2 3 4 5 6 7
Inv.
Gross requirements 100 100
Scheduled receipts 10 30
Projected on hand 10 10 10
Net requirements 90 70
Planned-order receipts 90 70
Planned-order releases 90 70

Beg.
G(3) LT = 1 wk. 1 2 3 4 5 6 7
Inv.
Gross requirements 270 210
Scheduled receipts
Projected on hand 40 40 40 40
Net requirements 230 210
Planned-order receipts 253 231
Planned-order releases 253 231

H(4) LT = 1 wk. Beg. 1 2 3 4 5 6 7

Inv.
Gross requirements 360 280
Scheduled receipts
Projected on hand 200 200 200 200 40
Net requirements 160 240
Planned-order receipts 200 240
Planned-order releases 200 240
Eighty units of end item E are needed at the beginning of week 6. Three cases (30
units per case) of J have been ordered and one case is scheduled to arrive in week
3, one in week 4, and one in week 5. Note: J must be ordered by the case, and B
must be produced in multiples of 120 units. There are 60 units of B and 20 units of
J now on hand. Lead times are two weeks each for E and B, and one week for J.

a. Prepare a material requirements plan for component J.

b. Suppose that in week 4 the quantity of E needed is changed from 80 to 70. The
planned-order releases through week 3 have all been executed. How many more Bs and Js will be on hand in week 6?

ANSWERS:

(a)

Beg.
Week 1 2 3 4 5 6
Master Inv.
Schedule
Quantity 80

Beg.
E LT = 2 wks. 1 2 3 4 5 6
Inv.
Gross requirements 80
Scheduled receipts
Projected on hand
Net requirements 80
Planned-order receipts 80
Planned-order releases 80

Beg.
B(2) LT = 2 wks. 1 2 3 4 5 6
Inv.
Gross requirements 160
Scheduled receipts
Projected on hand 60 60 60 60 60 20 20
Net requirements 100
Planned-order receipts 120
Planned-order releases 120
 Beg.
J(4) & J(3) LT = 1 wk. 1 2 3 4 5 6
Inv.
Gross requirements 480 240
Scheduled receipts 30 30 30
Projected on hand 20 20 20 50 80 50 50
Net requirements 460 160
Planned-order receipts 480 180
Planned-order releases 480 180

(b)

Beg.
Week 1 2 3 4 5 6
Master Inv.
Schedule
Quantity 70

Beg.
E LT = 2 wks. 1 2 3 4 5 6
Inv.
Gross requirements 70
Scheduled receipts
Projected on hand
Net requirements 70
Planned-order receipts 70
Planned-order releases 70

Beg.
B(2) LT = 2 wks. 1 2 3 4 5 6
Inv.
Gross requirements 140
Scheduled receipts
Projected on hand 60 60 60 60 60 40 40
Net requirements 80
Planned-order receipts 120
Planned-order releases 120
 Beg.
J(4) & J(3) LT = 1 wk. 1 2 3 4 5 6
Inv.
Gross requirements 480 210
Scheduled receipts 30 30 30
Projected on hand 20 20 20 50 80 80 80
Net requirements 460 130
Planned-order receipts 480 180
Planned-order releases 480 180

There will be an additional 20 units of B and 0 units of J.

The product structure tree for end item E follows. The manager wants to know the
material requirements for ordered part R that will be needed to complete 120 units of E
by the start of week 5. Lead times for items are one week for level 0 items, one week for
level 1 items, and two weeks for level 2 items. There is a scheduled receipt of 60 units of
M at the start of week 2 and 100 units of R at the start of week 1. Lot-for-lot ordering is
used.