Business Finance
Material Requirements Planning Part 4

Question Description

I need an explanation for this Business question to help me study.

Utilizing the Step-by-Step MRP Calculation Process, students will solve the following MRP problem given: Product A is an end item and is made from two units of B and four of C. B is made of three units of D and two of E. Product C is made of two units of F and two of E. Product A has a lead-time of one week. Products B, C and E have lead-times of two weeks. Products D and F have a lead-time of three weeks.

a. Show the bill of material (product structure tree). b. If 100 units of A are required in week 10, develop the MRP planning schedule, specifying when items are to be ordered and received. There are currently no units of inventory on hand.

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Final Answer

here is attached file of your assignment which is in excel format

B (2)
D (3)

E (2)

A (1)

B (2)

C (4)
E (2)

F (2)

E (2)

MRP
Indented Bill of Materials
Item name

Level

A
B
D
E
C
E
F

0
1
2
2
1
2
2

Distinct items

1
2
3
2
4
2
2

A
B
D
E
C
E
F

6

A
Week 0
Gross requirements
Scheduled receipts
On Hand Inventory
NET POQ Req
Planned receipts
Planned orders

B
Week 0
Gross requirements
Scheduled receipts
On Hand Inventory
NET POQ Req
Planned receipts
Planned orders

C
Week 0
Gross requirements
...

Harsh V (108)
University of Virginia

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