Given the following product structure, master production schedule, and inventory status below and assuming the requirements for each BOM item is 1: (a) develop a gross requirements plan for Item C; (b) develop a net requirements plan for Item Click the icon to view the product structure, master production schedule and inventory status. a) Develop a gross requirements plan for Items C. To do so, first find the gross requirements plans for its parents: items A and H. (Enter your responses as whole numbers). Week Item A Gross req Order req. 1 2 ■ ■ More Info 3 L Item A B Period Gross requirements: A Gross requirements: H 4 On Hand 15 110 5 8 100 6 Lead Time 1 2 7 9 90 8 100 Item F G 10 60 9 0 L On Hand 80 65 11 50 10 60 | 11 0 L 12 160 Lead Time 2 1 12 160 L X

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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**Transcription for Educational Website:**

**Material Requirements Planning (MRP) Example**

**Objective:** To develop a gross requirements plan for Item C.

**Instructions:**

1. **Analyze Product Structure and Master Production Schedule:**

   Given the following product structure, master production schedule, and inventory status, and assuming the requirements for each Bill of Materials (BOM) item is 1:
   
   a) Develop a gross requirements plan for Item C.
   
   b) Develop a net requirements plan for Item C.
   
2. **Gross Requirements Plan Development:**

   To develop a gross requirements plan for Item C, first find the gross requirements plans for its parent items: Items A and H. Enter your responses as whole numbers.

   - **Week Planning for Item A:**
      - Week 8: 100 units
      - Week 10: 60 units
      - Week 12: 160 units

3. **Additional Inventory Information:**

   - **Gross Requirements:**
     - Item A: Details provided for weeks 8, 9, 10, 11, and 12.
     - Item H: Requirements are 90 units in week 9 and 50 units in week 11.

4. **Inventory Status and Lead Times:**

   - Items and their respective "On Hand" inventory and "Lead Time":
     - A: On Hand 15, Lead Time 1
     - B: On Hand 110, Lead Time 2
     - C: On Hand 60, Lead Time 2
     - D: On Hand 40, Lead Time 1
     - E: On Hand 85, Lead Time 2
     - F: On Hand 80, Lead Time 2
     - G: On Hand 65, Lead Time 1
     - H: On Hand 20, Lead Time 1
     - J: On Hand 110, Lead Time 2
     - K: On Hand 110, Lead Time 2

5. **Product Structure Diagrams:**

   - **Item A's Structure:**
     - Contains subcomponents B, C, and D
     - Items E, F, and G are further subcomponents under B and C

   - **Item H's Structure:**
     - Comprised of subcomponents J, K, and C
     - Further breaks down into E, F,
Transcribed Image Text:**Transcription for Educational Website:** **Material Requirements Planning (MRP) Example** **Objective:** To develop a gross requirements plan for Item C. **Instructions:** 1. **Analyze Product Structure and Master Production Schedule:** Given the following product structure, master production schedule, and inventory status, and assuming the requirements for each Bill of Materials (BOM) item is 1: a) Develop a gross requirements plan for Item C. b) Develop a net requirements plan for Item C. 2. **Gross Requirements Plan Development:** To develop a gross requirements plan for Item C, first find the gross requirements plans for its parent items: Items A and H. Enter your responses as whole numbers. - **Week Planning for Item A:** - Week 8: 100 units - Week 10: 60 units - Week 12: 160 units 3. **Additional Inventory Information:** - **Gross Requirements:** - Item A: Details provided for weeks 8, 9, 10, 11, and 12. - Item H: Requirements are 90 units in week 9 and 50 units in week 11. 4. **Inventory Status and Lead Times:** - Items and their respective "On Hand" inventory and "Lead Time": - A: On Hand 15, Lead Time 1 - B: On Hand 110, Lead Time 2 - C: On Hand 60, Lead Time 2 - D: On Hand 40, Lead Time 1 - E: On Hand 85, Lead Time 2 - F: On Hand 80, Lead Time 2 - G: On Hand 65, Lead Time 1 - H: On Hand 20, Lead Time 1 - J: On Hand 110, Lead Time 2 - K: On Hand 110, Lead Time 2 5. **Product Structure Diagrams:** - **Item A's Structure:** - Contains subcomponents B, C, and D - Items E, F, and G are further subcomponents under B and C - **Item H's Structure:** - Comprised of subcomponents J, K, and C - Further breaks down into E, F,
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