MRP Time-Phased Quantity Requirements To illustrate these various complicating factors, consider the MRP procedure for component C4, which is used in product P1. This part also happens to be used on product P2 of the master schedule in Figure 25.2. The product structure for P2 is shown in

Question

MRP Time-Phased Quantity Requirements
To illustrate these various complicating factors, consider the MRP procedure for component C4, which is used in product P1. This part also happens to be used on product P2 of the master schedule in Figure 25.2. The product structure for P2 is shown in Figure 25.6. Component C4 is made out of material M4, one unit of M4 for each unit of C4, and the inventory status of M4 is given in Figure 25.5. The lead times and inventory status for each of the other items needed in the MRP calculations are shown in the table below. Complete the MRP calculations to determine the time-phased requirements for items S2, S3, C4, and M4, based on the requirements for P1 and P2 given in the MPS of Figure 25.2. It is assumed that the inventory on hand or on order for P1, P2, S2, S3, and C4 is zero for all future periods except for the calculated values in this problem solution.

Item	lead Time	Inventory
P1	Assembly lead time = 1 week	No inventory on hand or on order
P2	Assembly lead time = 1 week	No inventory on hand or on order
S2	Assembly lead time = 1 week	No inventory on hand or on order
S3	Assembly lead time = 1 week	No inventory on hand or on order
C4	Manufacturing lead time = 2 weeks	No inventory on hand or on order
M4	Ordering lead time = 3 weeks	See Figure 25.5.

Accepted Answer

The results of the MRP calculations are given in Figure 25.7. The delivery requirements for P1 and P2 must be offset by their one week assembly lead time to obtain the planned order releases. These quantities are then exploded into requirements for subassemblies S2 (for P1) and S3 (for P2).
These requirements are offset by their one week assembly lead time and combined in week 6 to obtain gross requirements for component C4. Net requirements equal gross requirements for P1, P2, S2, S3, and C4 because no inventory is on hand and there are no planned orders. The effect of current inventory and planned orders in the time-phased inventory status of M4 is observed as follows: The on-hand stock of 50 units plus scheduled receipts of 40 are used to meet gross requirements of 70 units of M4 in week 3, with 20 units remaining that can be applied to the gross requirements of 280 units in week 4. Net requirements in week 4 are therefore 260 units. With an ordering lead time of three weeks, the order release for 260 units must be planned for week 1.

Question 25.2: MRP Time-Phased Quantity Requirements To illustrate these va...

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