MRP Practice Questions

Question 1

Refer to the bill of materials for product A shown in Figure 1.

If there is no existing inventory, how many units of items G,E and D must be purchased to produce
5 units of end item A?

A
LT = 1

B (3) C (1)
LT = 2 LT = 3

D (1) E (2) F (1) D (1)

LT = 3 LT = 6 LT = 1 LT = 3

G (1)
LT = 3
Figure 1

LT = Lead Time
(x) indicates the multiplicity: e.g., B(3) implies a multiplicity of 3.

Question 2

The Master Production Schedule for Product A calls for the assembly department to begin final
assembly according to the following schedule: 100 units in week 2; 200 units in week 4; 120 units
in week 6; 180 units in week 7; and 60 units in week 8. Develop a Material Requirements Plan for
the next 8 weeks for items B, C, and D, identifying any action notice that would be required. (Action
notice: a notice that is generated when an order needs to be released or placed or when the
quantity or timing of an order needs to be changed.)

The Bill of Materials for A is shown in Figure 2 and data from the inventory records in Table 1.

A
LT = 2

B (1) C (2)
LT = 1 LT = 2

D (1)
LT = 3

Figure 2

Data Category Item B Item C Item D

Lot-sizing Rule POQ (P = 3) L4L FOQ = 500 units
Lead Time (LT) 1 week 2 weeks 3 weeks
Scheduled Receipts None 200 (week 1) None
Beginning (on-hand) 20 0 425
inventory
Table 1

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Question 3

Product A is made from components B, C and D. Item B is a subassembly that requires 2 units of
C and 1 unit of E. Item D also is an intermediate item, made form F. All other usage quantities are
2. Draw the Bill of Materials for product A.

Question 4

The partially completed inventory record for the tabletop subassembly in Table 2 shows gross
requirements, scheduled receipts, lead time, and current on-hand inventory.

a. Complete the last three rows of the record for an FOQ of 110 units
b. Complete the last three rows of the record by using the L4L lot-sizing rule
c. Complete the last three rows of the record by using the POQ lot-sizing rule, with P = 2

Tabletop 0 1 2 3 4 5 6 7 8 9
Assembly GR 90 85 80 45 90
L=2 SR 110
OH 40
PR
POR
Table 2

Question 5

The Bill of Materials for product A is shown in Figure 3 and data from the inventory records are
shown in Table 3. In the Master Production Schedule for Product A, the MPS start row (i.e., the GR
for item A) has 500 units in week 7. The lead time for production of A is two weeks. Develop the
material requirements plan for the next 7 weeks for items B, C and D. (Note: the default lot sizing
rule for an end item is L4L.)

B (2)

C (1) C (1)

D (2) D (1) D (2)

Figure 3

Data Category Item B Item C Item D

Lot-sizing Rule L4L L4L FOQ = 2000 units
Lead Time (LT) 3 weeks 1 week 1 week
Scheduled Receipts None None 2,000 (week 1)
Beginning (on-hand) 0 0 200
inventory
Table 3

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Question 6

Product M is made of two units of N and three units of P. N is made of two units of R and four units
of S. R is made of one unit of S and three units of T. P is made of two units of T and four units of U.

a. Show the Bill of Materials (product structure tree)

b. If 100 M are required, how many units of each component are needed?

Question 7

A manufacturer of children’s toys produces an action figure represented by end-item “A” using the
Bill of Materials shown below (Figure 4). Also shown is a table (Table 4) indicating on-hand
inventories for the components used in its assembly. Compute the cost of the purchased
components to complete 100 units of end-item A. Assume each purchased component (B,D and F)
costs $1.

C (2) D (1)

B (2) E (1) B (1)

F (3)

Figure 4

Item A B C D E F
Inventory 0 154 38 255 87 124
Table 4

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Question 8

Brown and Brown Electronics manufactures a line of digital videodisc (DVD) players. Although
there are differences among the various products, there are a number of common parts within
each player. The bill of materials (Figure 5), showing the number of each item required, lead times,
and the current inventory on hand (Table 5) for the parts and components, follows:

DVD Model DVD Model

A B

C (1) D (2) C (2) E (2)

F (2) G (2) F (2) F (2) G (2)

I (2) H (1) I (2) I (2) H (1)

Figure 5

Item Number Currently in Stock Lead Time (Weeks)

DVD Model A 30 1
DVD Model B 50 2
Subassembly C 75 1
Subassembly D 80 2
Subassembly E 100 1
Part F 150 1
Part G 40 1
Raw Material H 200 2
Raw Material I 300 2
Table 5

Brown and Brown created a forecast that it plans to use as its Master Production Schedule,
producing exactly to schedule. Part of the Master Production Schedule shows a demand for 700
units of Model A and 1,200 units of Model B in Week 10.

Develop an MRP schedule to meet the demand.

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 Solutions

Question 1

30 units of item E, 20 units of item D and 5 units of item G must be purchased to make 5 units of A.

Units of E:
The usage quantities shown in Figure 1 indicate that 2 units of E are needed to make 1 unit of B
and that 3 units of B are needed to make 1 unit of A.
No. of units of E required to make 5 units of A: 2 x 3 x 5 = 30

Units of D:
1 unit of D is consumed to make 1 unit of B, and 3 units of B are needed to make 1 unit of A.
1 unit of D is consumed to make 1 unit of C and that is required to make 1 unit of A.
No. of units of D required to make 5 units of A: 1 x 3 x 5 + 1 x 1 x 5 = 20

Units of G:
1 unit of G is needed to make 1 unit of F, which is then needed to make 1 unit of C and 1 unit of A.
No. of units of G required to make 5 units of A: 1 x 1 x 1 x 5 = 5

Question 2

Note that the given information about item A is its planned order release – units are required to
BEGIN the final assembly process of A.

Begin with items B and C, develop their inventory records. The Master Production Schedule for
product A must be multiplied by 2 to derive the gross requirements of item C because of the usage
quantity. Once the planned order releases for item C are found, the gross requirements for item D
can be calculated.

Notice that an action notice would call for delaying the scheduled receipt for item C from week 1 to
week 2 (to reduce unnecessary holding cost). Other action notices would notify planners that items
B and D have a planned order release in week 1. (Week 1 is the beginning of the time horizon,
planners need to be notified what actions to take.)

0 1 2 3 4 5 6 7 8
Item B GR 100 200 120 180 60
POQ SR
3 OH 20 20 200 200 0 0 240 60 0
L=1 PR 280 360
A1 POR 280 360
Item C GR 200 400 240 360 120
L4L SR 200 -->
L=2 OH 0 200
A2 PR 400 240 360 120
POR 400 240 360 120
Item D GR 400 240 360 120
FOQ SR
500 OH 425 425 25 25 285 425 305 305 305
L=3 PR 500 500
C1 POR 500 500

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Question 3

B (2) D (2)

C (2) E (1) C (2) F (2)

Figure 6

Question 4

a. Complete the last three rows of the record for an FOQ of 110 units

Tabletop 0 1 2 3 4 5 6 7 8 9
Assembly GR 90 85 80 45 90
L=2 SR 110
FOQ 110 OH 40 60 60 85 85 5 5 70 90 90
PR 110 110 110
POR 110 110 110

b. Complete the last three rows of the record by using the L4L lot-sizing rule

Tabletop 0 1 2 3 4 5 6 7 8 9
Assembly GR 90 85 80 45 90
L=2 SR 110
L4L OH 40 60 60
PR 25 80 45 90
POR 25 80 45 90

c. Complete the last three rows of the record by using the POQ lot-sizing rule, with P = 2

Tabletop 0 1 2 3 4 5 6 7 8 9
Assembly GR 90 85 80 45 90
L=2 SR 110
POQ 2 OH 40 60 60 90
PR 25 80 135
POR 25 80 135

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Question 5

0 1 2 3 4 5 6 7
Item A GR 500
L4L SR
L=2 OH
PR 500
POR 500
Item B GR 1000
L4L SR
L=3 OH
A2 PR 1000
POR 1000
Item C GR 1000 500
L4L SR
L=1 OH
A1 B1 PR 1000 500
POR 1000 500
Item D GR 2000 1000 500
FOQ 2000 SR 2000
L=1 OH 200 200 200 200 1200 700 700 700
A1 C2 PR 2000
POR 2000

Question 6

a. Show the Bill of Materials (product structure tree).

N (2) P (3)

R (2) U (4)

S (1) T (3) S (4) T (2)

Figure 7

b. If 100 M are required, how many units of each component are needed?

Requirements:

M = 100
N = 2 x 100 = 200
P = 3 x 100 = 300
R = 2 x no. of N required = 2 x 2 = 400
U = 4 x no. of P required = 4 x 300 = 1200
S = 4 x no. of N required + 1 x no. of R required = 4 x 200 + 400 = 1200
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T = 3 x no. of R required + 2 x no. of P required = 3 x 400 + 2 x 300 = 1800
Question 7

On Hand Item Net Requirement C D E B F

0 A 100 200 100 100
38 C 162 200 162 324
255 D 0 100
87 E 75 162 225
154 B 270 424
124 F 101 225

Purchased components: B, D, F, at $1 each

Cost of purchased components for B = $270
Cost of purchased components for D: 0
Cost of purchased components for F = $101
Total cost of purchased components = 270 + 101 = $371

Question 8

Producing exactly to schedule means the lot sizing rule used is L4L for every item. See table below
for detailed calculation.

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 0 1 2 3 4 5 6 7 8 9 10
DVD A GR 700
L4L SR
L=1 OH 30 30 30 30 30 30 30 30 30 30 0
PR 670
POR 670
DVD B GR 1200
L4L SR
L=2 OH 50 50 50 50 50 50 50 50 50 50 0
PR 1150
POR 1150
Item C GR 2300 670
L=1 SR
A1 OH 75 75 75 75 75 75 75 75
B2 PR 2225 670
POR 2225 670
Item D GR 1340
L=2 SR
A2 OH 80 80 80 80 80 80 80 80 80
PR 1260
POR 1260
Item E GR 2300
L=1 SR
B2 OH 100 100 100 100 100 100 100 100
PR 2200
POR 2200
Item F GR 6970 1340
L=1 SR
C2 OH 150 150 150 150 150 150 150
D2 PR 6820 1340
POR 6820 1340
Item G GR 4450 1340
L=1 SR
C2 OH 40 40 40 40 40 40 40
PR 4410 1340
POR 4410 1340
Item H GR 4410 1340
L=2 SR
G1 OH 200 200 200 200 200 200
PR 4210 1340
POR 4210 1340
Item I GR 13640 2680
L=2 SR
F2 OH 300 300 300 300 300 300
PR 13340 2680
POR 13340 2680

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