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The following Level 0 MRP information is given for a personal computing system.

ID: 348465 • Letter: T

Question

The following Level 0 MRP information is given for a personal computing system. Using a lead time of two weeks, what are the Net Requirements for computing systems based on the MRP table below. Assume any inventory on hand will be used as soon a possible. MRP Level 0 Week Gross Requirements On-Hand/Sched. Receipts Net Requirements Planned Order Releases 2500 3000 4500 1000 2500 O A.2500 in week 3, 3000 in week 4, 4500 in week !5 B.2500 in week 1, 3000 in week 2, 4500 in week 3 OC.1500 in week 3, 3000 in week 4, 2000 in week 5 D.1500 in week 1, 3000 in week 2, 2000 in week 3 E.Impossible to determine from this information

Explanation / Answer

Following are to be noted :

Since Lead time is 2 weeks , Net requirement of 1500 during week 3 will feature asPlanned Order Release od 1500 during Week 1

Therefore, Net requirement for week 3 = Gross requirement for week 4 – On hand inventory = 3000 – 0 = 3000

Since Lead time is 2 weeks , gross requirement of 3000 during week 4 will feature as Planned order Release of 3000 during week 2

Since , lead time is of 2 weeks , net requirement of 2000during week 5 will feature as Planned order release of 2000 during week 3

The filled up MRP table as follows :

WEEK 1

WEEK 2

WEEK 3

WEEK 4

WEEK 5

Gross requirement

On hand / Scheduled receipt

Net requirement

Planned order release

ANSWER :Ci 1500 IN WEEK 3 , 3000 IN WEEK 4 AND 2000 IN WEEK 5 ( NET REQUIREMENTS )

WEEK 1

WEEK 2

WEEK 3

WEEK 4

WEEK 5

Gross requirement

On hand / Scheduled receipt

Net requirement

Planned order release