Material and Operations Management question on MRP:
Could you fill in the tables for question 2 in the links below? Then perhaps briefly explain how you did it.
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I've attached images of three MRP tables I've created for three parts in the above problem. I'll also include a short explanation on how I filled each out.
Part A represents the entire bicycle. There are three scheduled orders for bicycles in weeks 5, 6, and 7. These are filled in under the Scheduled Receipts row. Part A can be ordered in any size of lot (LFL), and it takes 2 weeks to assemble the bicycles. Therefore Planned Order Releases must be put in the table 2 weeks earlier than when the bicycles are needed by. The net requirement must deduct the projected on hand number of bicycles you begin with. Part A's POH is 100, therefore the net requirement of bicycles for week 5 is only 200, while the gross requirement is 300. The POH of Part A decreases to 0 after week 5 because all of the inventory is shipped out for orders and nothing remains available on hand.
Part HB represents the handle bar required to assemble each bicycle. Only one is needed per bike, so the figures in this table remain similar to Part A's. What is different is that Part HB can only be ordered in multiples of 300 (Lot Size). Its lead time is 2 weeks, so like Part A it should be ordered 2 weeks in advance of when the Net Requirement is due, but the Planned Order Release will be in multiples of 300. This leads to a surplus in our Projected On Hand after week 7. The Net Requirement for week 5 factors in that we start with 50 of Part HB already on hand.
Part W is again different because we require two parts of W (the wheels) for each Part A to be complete. This means that the Gross Requirements are double the order sizes placed in weeks 5-7. Also note that your sheet says there is a Planned Order Release of 200 in week 4. This will affect how much you need to order in week 5 to keep up with production. Luckily, Part W can be ordered in any size of lot, so we end up with 0 surplus at the end of week 7. Again, the Net Requirement in week 5 is affected by the 150 of Part W already on hand beginning in week 1. With each week the Projected On Hand increases by the number of parts in stock, but also decreases beginning week 5 by the number of parts used to fulfill each order.
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