Inv 1 2 3 4 5 6 7 8 Gross requirements 240 Scheduled receipts Projected on hand

Inv 1 2 3 4 5 6 7 8 gross requirements 240 scheduled

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Inv 1 2 3 4 5 6 7 8 Gross requirements 240 Scheduled receipts Projected on hand 120 120 120 120 120 120 Net requirements 120 Planned order receipt 120 Planned order release 120
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Body: LT = 3 Wks Beg. Inv 1 2 3 4 5 6 7 8 Gross requirements 130 Scheduled receipts Projected on hand 50 50 50 50 50 50 Net requirements 80 Planned order receipt 80 Planned order release 80 Frame: LT = 1 Wk Beg. Inv 1 2 3 4 5 6 7 8 Gross requirements 95 Scheduled receipts Projected on hand 35 35 35 Net requirements 95 Planned order receipt 95 Planned order release 95 Controls: LT = 1 Wk Beg. Inv 1 2 3 4 5 6 7 8 Gross requirements 130 Scheduled receipts Projected on hand Net requirements 130 Planned order receipt 130 Planned order release 130 Wheel Assemblies: LT = 1 Wk Beg. Inv 1 2 3 4 5 6 7 8 Gross requirements 280 Scheduled receipts Projected on hand 240 240 240 Net requirements 40 Planned order receipt 40 Planned order release 40
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The MRP department’s computer died just as it spit out the following information: Planned-Order Releases for Item J27 = 640 units in week 2. We have the following product structure tree and inventory information shown below 565 X43 Y36(2) N78 J27(4) X43 Part Number On Hand Lot Size Lead Time 565 0 Lot-for-lot 1 week X43 60 Multiples of 120 1 week N78 0 Lot-for-lot 2 weeks Y36 200 Lot-for-lot 1 week J27 0 Lot-for-lot 2 weeks Step 1: Look at which items are linked together by the Planned-Order Releases for J27: J27, Y36, and 565. Step 2: Work from the bottom to the top of the product structure tree. Start with J27 to determine its Planned-Order Receipts, Net Requirements, and Gross Requirements. a. We know that J27 has a Planned-Order Release = 640 in week 2. The lead time for J27 = 2 weeks. This means that the Planned-Order Receipts = 640 in week 4 (2 weeks later). The lot size for J27 = lot-for-lot. This means that the Net Requirements = Planned-Order Receipts in week 4 = 640. The on hand balance for J27 = 0. This means that the Gross Requirements in week 4 = Net Requirements + On Hand = 640 + 0 = 640. b. If the Gross Requirements for J27 = 640 in week 4, then the Planned-Order Releases for Y36 = 160 (640 / 4) in week 4.
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