Question

Problem L You work for a landscaping company. You need four poles and 2 cubic yards...

Problem L

You work for a landscaping company.

You need four poles and 2 cubic yards of mulch for every tree that is planted.

Calculate the Material Requirements Plan below.

The beginning inventory for each item has been given.

Week

Beg. Inv.

1

2

3

4

5

6

7

8

Quantity

72

65

30

64

Tree

Lead Time = 1 wk

Lot for Lot

Gross Requirements

Scheduled Receipts

Projected On-Hand

2

Net Requirements

Planned Order Receipts

Planned Order Releases

Poles

Lead Time = 1 wk

Lot Size of 12

Gross Requirements

Scheduled Receipts

Projected On-Hand

14

Net Requirements

Planned Order Receipts

Planned Order Releases

Mulch

(in cubic yards)

Lead Time = 1 wk

Lot-Size of 9

Gross Requirements

Scheduled Receipts

Projected On-Hand

9

Net Requirements

Planned Order Receipts

Planned Order Releases

Homework Answers

Answer #1

Find the MRP answer shown below.


We need to remember a few points.

  • The net requirement for a period is the gross requirement – on hand inventory of previous period.
  • The on hand inventory for current period is the planned order receipt + scheduled receipt – net requirement
  • Planned order receipt should be in multiple of lot size. The value should exceed the net requirement if it cannot match
  • Planned order release will be the lead time ahead of the planned order receipt.
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