MATERIALS REQUIREMENT PLANNING SYSTEM

1) For the example problem solved in class (Electric Meter problem), extend the
materials requirement plan for the periods between 9 and 17 for all 4 items
(Meter A, Meter B, subassembly C and subassembly D).

Week
Item 3 4 5 6 7 8

Meter A Gross Requirement 1250

LT = 2 weeks Scheduled Receipts
On Hand = 50 Projected Available Balance 50 50 50 50 50 0
Safety Stock = 0 Net Requirements 1200
Order qty = lot-for-
lot Planned Order Receipts 1200
Planned Order Releases 1200

Meter B Gross Requirement 470

LT = 2 weeks Scheduled Receipts 10
On Hand = 60 Projected Available Balance 60 60 70 70 70 0
Safety Stock = 0 Net Requirements 400
Order qty = lot-for-
lot Planned Order Receipts 400
Planned Order Releases 400

Subassembly C Gross Requirement 1600

LT = 1 week Scheduled Receipts
On hand = 40 Projected Available Balance 35 35 35 435 435 435
Safety Stock = 5 Net Requirements 1565
Order qty = 2000 Planned Order Receipts 2000
Planned Order Releases 2000

Subassembly D Gross Requirement 4000 1200 270

LT = 1 week Scheduled Receipts 100
18
On hand = 200 Projected Available Balance 0 280 1280 80 80 4810
Safety Stock = 20 Net Requirements 3720 190
Order qty = 5000 Planned Order Receipts 5000 5000
Planned Order Releases 5000 5000

Projected Available Balance (t) = Projected Available Balance (t-1) + Scheduled Order
Receipts (t) + Planned Order Receipts (t) – Gross Requirement (t)
Net Requirement (t) = Gross Requirement (t) – Projected Available Balance (t-1)

Planned Order Receipt (t) = Net Requirement (t) or a multiple of the order quantity

Planned Order Release (t-l) = Planned Order Receipt (t)