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EXERCISE

Carrying cost : $ 1.00 per unit


Ordering cost : $ 500 per order

a) Complete the MRP table based on lot sizing; L4L

Item: A LLC: 1 Period

Lot Size: L4L LT: 2 1 2 3 4 5 6 7 8 9

Gross Requirements (D) 60 50 40 120 80 80 200 100 50

Scheduled Receipts 100 50 50 100

Projected on Hand 100 140 90 100 0 0 0 0 0 0


Net Requirements 20 30 80 100 100 50
Planned Order Receipts 20 30 80 100 100 50
Planned Order Releases 20 30 80 100 100 50

Cost: (330x1) + (6x500) = $3330

b) Complete the MRP table based on lot sizing; MIN150

Item: B LLC: 1 Period

Lot Size: MIN150 LT: 2 1 2 3 4 5 6 7 8 9

Gross Requirements 60 50 40 120 80 80 200 100 50

Scheduled Receipts 100 50 50 100

Projected on Hand 100 140 90 100 130 100 20 70 120 70

Net Requirements 20 80 30

Planned Order Receipts 150 150 150

Planned Order Releases 150 150 150

Cost: (840x1)+ (3x 500) =$ 2340.00

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c) Complete the MRP table based on lot sizing; MULT30

Item: C LLC: 1 Period

Lot Size: MULT30 LT: 2 1 2 3 4 5 6 7 8 9

Gross Requirements 60 50 40 120 80 80 150 100 50

Scheduled Receipts 100 50 50 100

Projected on Hand 100 140 90 100 10 10 20 0 20 0


Net Requirements 20 20 70 30 100 30

Planned Order Receipts 30 30 90 30 120 30

Planned Order Releases 30 30 90 30 120 30

Cost: (390x1)+ (6x500) = $ 3390

d)Complete the MRP table based on lot sizing; POQ2

Item: D LLC:2 Period

Lot Size: POQ2 LT: 2 1 2 3 4 5 6 7 8 9

Gross Requirements 60 50 40 120 80 80 150 100 50

Scheduled Receipts 100 50 50 100

Projected on Hand 100 140 90 100 80 50 150 100 0 0


Net Requirements 20 30 50

Planned Order Receipts 100 180 50

Planned Order Releases 100 180 50

Cost: [(140+ 90+100+80+50+150+100+0+0) x 1] +(3x500)


= $2210

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e) Complete the MRP table based on lot sizing; FOQ120

Item: E LLC: 1 Period

Lot Size: FOQ120 LT: 2 1 2 3 4 5 6 7 8 9

Gross Requirements 60 50 40 120 80 80 150 100 50

Scheduled Receipts 100 50 50 100

Projected on Hand 100 140 90 100 100 70 110 60 80 30

Net Requirements 20 10 40

Planned Order Receipts 120 120 120

Planned Order Releases 120 120 120

Cost: (780 x 1) + (3x 500) = $ 2280

d) Based on above MRP, summarize the results in the planned order report
as follows:

ITEM PLANNED ORDER REPORT


1 2 3 4 5 6 7 8 9
A 20 30 80 100 100 50
B 150 150 150
C 30 30 90 30 120 30
D 100 180 50
E 120 120 120
TOTAL 420 60 470 280 490 130

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