Assume that Product Z is made of two units of A and three units of B. A is made of four units of C and four of D. D is made of two units of E Lead times for purchase or fabrication of each unit to final assembly are: Z takes two weeks; A, B, C, and D take one week each; and E takes three weeks. Fifty one units of Product Z are required in Period 10. (Assume that there is currently no inventory on hand of any of these items.) b. Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates. (Leave no cells blank - be certain to enter "0" wherever required.) Period 10 Gross requirements Item Z OH = 0 LT = 2 Scheduled receipts Projected available balance Net requirements SS = 0 Q = L4L Planned order receipts Planned order releases Gross requirements Item A OH = 0 LT = 1 SS = 0 Q = L4L Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Gross requirements Item B OH = 0 LT = 1 SS = 0 Q = L4L Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Gross requirements Scheduled receipts Item C OH = 0 LT = 1 SS = 0 Q = L4L Projected available balance Net requirements Planned order receipts Planned order releases Gross requirements Scheduled receipts Item D OH = 0 LT =1 SS = 0 Q = L4L Projected available balance Net requirements Planned order receipts Planned order releases

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Below is a transcription of the provided document for instructional use on an educational website:

---

**Assumptions:**
- Product Z consists of two units of A and three units of B.
- A is made of four units of C and four of D.
- D is made of two units of E.

**Lead Times for Purchase or Fabrication:**
- Z takes two weeks
- A, B, C, and D take one week each
- E takes three weeks

**Requirement:**
- Fifty units of Product Z are required in Period 10.
- Assume no inventory is currently on hand for any of these items.

---

### Task: Develop an MRP Planning Schedule
- Show gross and net requirements, order release, and receipt dates.
- **Note:** Leave no cells blank – enter "0" wherever required.

| **Period**     | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|----------------|---|---|---|---|---|---|---|---|---|----|
| **Item Z**     |   |   |   |   |   |   |   |   |   |    |
| Gross Requirements           |   |   |   |   |   |   |   |   |   |    |
| Scheduled Receipts           |   |   |   |   |   |   |   |   |   |    |
| Projected Available Balance  |   |   |   |   |   |   |   |   |   |    |
| Net Requirements             |   |   |   |   |   |   |   |   |   |    |
| Planned Order Receipts       |   |   |   |   |   |   |   |   |   |    |
| Planned Order Releases       |   |   |   |   |   |   |   |   |   |    |

| **Item A**     |   |   |   |   |   |   |   |   |   |    |
| OH = 0, LT = 1, SS = 0, Q = L4L |
| Gross Requirements           |   |   |   |   |   |   |   |   |   |    |
| Scheduled Receipts           |   |   |   |   |
Transcribed Image Text:Below is a transcription of the provided document for instructional use on an educational website: --- **Assumptions:** - Product Z consists of two units of A and three units of B. - A is made of four units of C and four of D. - D is made of two units of E. **Lead Times for Purchase or Fabrication:** - Z takes two weeks - A, B, C, and D take one week each - E takes three weeks **Requirement:** - Fifty units of Product Z are required in Period 10. - Assume no inventory is currently on hand for any of these items. --- ### Task: Develop an MRP Planning Schedule - Show gross and net requirements, order release, and receipt dates. - **Note:** Leave no cells blank – enter "0" wherever required. | **Period** | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |----------------|---|---|---|---|---|---|---|---|---|----| | **Item Z** | | | | | | | | | | | | Gross Requirements | | | | | | | | | | | | Scheduled Receipts | | | | | | | | | | | | Projected Available Balance | | | | | | | | | | | | Net Requirements | | | | | | | | | | | | Planned Order Receipts | | | | | | | | | | | | Planned Order Releases | | | | | | | | | | | | **Item A** | | | | | | | | | | | | OH = 0, LT = 1, SS = 0, Q = L4L | | Gross Requirements | | | | | | | | | | | | Scheduled Receipts | | | | |
**Material Requirements Planning (MRP) Table Explanation**

The table depicted is a standard format used in Material Requirements Planning (MRP) to manage inventory and production scheduling. The information listed includes various parameters and their respective slots for entries over a set planning horizon, often represented in columns for weeks, days, or other time periods.

1. **Item E**: This row identifies the item being planned.

2. **Parameters**:
   - **OH (On-Hand Inventory) = 0**: Indicates the current inventory level at the start. In this case, it starts at zero.
   - **LT (Lead Time) = 3**: The time, in planning periods, required to receive an order after it is placed.
   - **SS (Safety Stock) = 0**: The minimum desired inventory level to prevent stockouts.
   - **Q = L4L (Lot-for-Lot)**: A production and ordering method where the order quantity is set to match the exact demand for each period.

3. **Rows for Planning**:
   - **Gross requirements**: Total demand for the item in each planning period.
   - **Scheduled receipts**: Orders that are due to arrive within the planning period.
   - **Projected available balance**: Forecasted inventory at the end of each period after demand and receipts are considered.
   - **Net requirements**: The demand that exceeds projected available inventory and must be met with new orders.
   - **Planned order receipts**: Planned reception of goods, typically scheduled based on lead time.
   - **Planned order releases**: Orders that need to be released to vendors or production to meet future requirements, scheduled backward from the planned order receipt dates by the lead time.

**Visual Layout**:
The matrix below these terms contains blank cells that users typically fill in with values specific to each planning period. This ensures effective tracking and management of inventory levels, ensuring timely production and order fulfillment.
Transcribed Image Text:**Material Requirements Planning (MRP) Table Explanation** The table depicted is a standard format used in Material Requirements Planning (MRP) to manage inventory and production scheduling. The information listed includes various parameters and their respective slots for entries over a set planning horizon, often represented in columns for weeks, days, or other time periods. 1. **Item E**: This row identifies the item being planned. 2. **Parameters**: - **OH (On-Hand Inventory) = 0**: Indicates the current inventory level at the start. In this case, it starts at zero. - **LT (Lead Time) = 3**: The time, in planning periods, required to receive an order after it is placed. - **SS (Safety Stock) = 0**: The minimum desired inventory level to prevent stockouts. - **Q = L4L (Lot-for-Lot)**: A production and ordering method where the order quantity is set to match the exact demand for each period. 3. **Rows for Planning**: - **Gross requirements**: Total demand for the item in each planning period. - **Scheduled receipts**: Orders that are due to arrive within the planning period. - **Projected available balance**: Forecasted inventory at the end of each period after demand and receipts are considered. - **Net requirements**: The demand that exceeds projected available inventory and must be met with new orders. - **Planned order receipts**: Planned reception of goods, typically scheduled based on lead time. - **Planned order releases**: Orders that need to be released to vendors or production to meet future requirements, scheduled backward from the planned order receipt dates by the lead time. **Visual Layout**: The matrix below these terms contains blank cells that users typically fill in with values specific to each planning period. This ensures effective tracking and management of inventory levels, ensuring timely production and order fulfillment.
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