Class Example - MRP
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School
Thompson Rivers University *
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Course
3320
Subject
Industrial Engineering
Date
Feb 20, 2024
Type
docx
Pages
3
Uploaded by ConstableEnergy5160
MRP – Class Example
A furniture-maker has received an order for 100 units of its kitchen table to be delivered at the
beginning of Dec 3. The table consists of 1 top & 4 legs, made from purchased lumber (2” by 6” by 6’).
Each top is made from 1.5 units of lumber, and each leg is made from 1/6 unit of the lumber. Tops and
legs can be made independently in two different workstations, and manufacturing time for 1 top is
expected to be 12 minutes and for 1 leg 2 minutes. All 100 tops & 400 legs are made before any table
are assembled, and final assembly of 1 table is expected to take 4 minutes. The shop works 8 hours a
day, Mon-Fri. Currently, they have 20 units of lumber in stock, and purchase lead time for lumber is 1
workday. Each of the 3 workstations are operated by a different worker. (a)
Calculate the manufacturing lead time for each operation. (b)
Perform material requirements planning for this order. Assume lot-for-lot ordering.
Page 1
of 3
Production Schedule
Day
26-Nov
27-Nov
28-Nov
29-Nov
2-Dec
3-Dec
for End item:
Quantity
100
Table
Gross requirements
100
Quantity = Scheduled receipts
per Parent =
Projected on hand
On Hand = 0
Net requirements
Lot Size = L4L
Planned-order receipts
LT = 1
Planned-order releases
Top
Gross requirements
Quantity = 1
Scheduled receipts
per Parent =
Table
Projected on hand
On Hand = 0
Net requirements
Lot Size = L4L
Planned-order receipts
LT = 3
Planned-order releases
26-Nov
27-Nov
28-Nov
29-Nov
2-Dec
3-Dec
Leg
Gross requirements
Quantity = 4
Scheduled receipts
per Parent =
Table
Projected on hand
On Hand = 0
Net requirements
Lot Size = L4L
Planned-order receipts
LT = 2
Planned-order releases
Lumber
Gross requirements
Quantity = 1.5,
1/6
Scheduled receipts
per Parent =
Top,
Leg
Projected on hand
On Hand = 20
Net requirements
Lot Size = L4L
Planned-order receipts
LT = 1
Planned-order releases
What action should be taken now?
Page 2
of 3
(c) How would your answer for lumber change
(i)
if the safety stock for lumber is 20 units?
(ii)
if lumber is purchased in batch size of 250 units? (no SS)
(iii)
if 250 units have been ordered and are scheduled to be received on Nov 27? C(i)
26-Nov
27-Nov
28-Nov
29-Nov
2-Dec
3-Dec
Lumber
SS=20
Gross requirements
150
67
Quantity =
Scheduled receipts
per Parent =
Projected on hand
0
0
0
On Hand = 20
Net requirements
150
67
Lot Size = L4L
Planned-order receipts
LT = 1
Planned-order releases
150
67
C(ii)
Lumber
Gross requirements
150
67
Quantity =
Scheduled receipts
per Parent =
Projected on hand
20
20
120
53
On Hand = 20
Net requirements
130
0
Lot Size = 250
Planned-order receipts
250
LT = 1
Planned-order releases
250
C(iii)
lumber
Gross requirements
150
67
Quantity =
Scheduled receipts
250
per Parent =
Projected on hand
20
270
120
53
On Hand = 20
Net requirements
0
0
Lot Size = 250
Planned-order receipts
LT = 1
Planned-order releases
Page 3
of 3
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