Homework SourseThe following timephasing chart is available for a single it
The following time-phasing chart is available for a single item within a MRP system. Complete this chart by estimating inventory on hand and planned order release values. Lead time is 2 weeks and order policy is 100 units, which means this part can be ordered only in 100-unit batches. Inventory replenishment is JIT, lead times are negligible.
Week Number
1
2
3
4
5
6
7
8
9
10
Gross Requirements
80
95
110
50
Schedule Receipt
100
Inventory on Hand
Planned order Release
| Week Number | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Gross Requirements | 80 | 95 | 110 | 50 | ||||||
| Schedule Receipt | 100 | |||||||||
| Inventory on Hand | ||||||||||
| Planned order Release |
Solution
Material Requirements Planning (MRP):
Material Requirements Planning (MRP) is a computer-based production planning and inventory control system. MRP is concerned with both production scheduling and inventory control. It is a material control system that attempts to keep adequate inventory levels to assure that required materials are available when needed. MRP is applicable in situations of multiple items with complex bills of materials. MRP is not useful for job shops or for continuous processes that are tightly linked.
The major objectives of an MRP system are too simultaneously:
MRP is especially suited to manufacturing settings where the demand of many of the components and subassemblies depend on the demands of items that face external demands. Demand for end items is independent. In contrast, demand for components used to manufacture end items depend on the demands for the end items. The distinctions between independent and dependent demands are important in classifying inventory items and in developing systems to manage items within each demand classification. MRP systems were developed to cope better with dependent demand items.
The three major inputs of an MRP system are the master production schedule, the product structure records, and the inventory status records. Without these basic inputs the MRP system cannot function.
MRP will determine from the master production schedule and the product structure records the gross component requirements; the gross component requirements will be reduced by the available inventory as indicated in the inventory status records.
Week Number
1
2
3
4
5
6
7
8
9
10
Gross Requirements
0
0
80
95
0
110
0
0
50
0
Schedule Receipt
100
100
-
Inventory Hand
100
100
20
-75
-75
-175
-175
-175
-225
0
Planned Ord. Release
0
80
95
75
110
0
50
0
0
0
Decisions
Let us be clear about what we have done here with respect to our two decisions of:
| Week Number | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Gross Requirements | 0 | 0 | 80 | 95 | 0 | 110 | 0 | 0 | 50 | 0 |
| Schedule Receipt | 100 | 100 | - | |||||||
| Inventory Hand | 100 | 100 | 20 | -75 | -75 | -175 | -175 | -175 | -225 | 0 |
| Planned Ord. Release | 0 | 80 | 95 | 75 | 110 | 0 | 50 | 0 | 0 | 0 |
