Question 12.SP.2: Material Requirements Plan Setup Guide Twelve units of the e...
Material Requirements Plan Setup Guide
Twelve units of the end item are needed at the beginning of week 6. Prepare a material requirements plan for component D given that there is a scheduled receipt of 10 units of subassembly A in week 3 plus the following information.
| Item | End | A | B | C | D |
| Units on hand | 2 | 6 | 4 | 32 | 15 |
| Lead time (weeks) | 1 | 2 | 1 | 2 | 2 |
Steps
1. If a question asks for a materials requirement plan for a component such as D in the tree diagram, circle all occurrences of that component so you will be sure to include them.
2. Label the spreadsheet sections, top to bottom, following the order shown in the tree diagram:
Top section: End Item
Next section: A
Next section: B
Last section: D
(You don’t need one for C because the problem asks for D, and C isn’t needed for D.)
3. Add the LT (lead time) for the end item and each component next to the section labels.
4. Add any beginning inventory (on hand) for the end item and each component to their spreadsheet sections.
5. Place the desired end item quantity in the master schedule in the week it is needed, and in the gross requirements of the end item in that same week.
6. Complete the remainder of the plan.
