**Material Requirements Planning (MRP) Overview**The following information and table are provided to help you understand the process of Material Requirements Planning (MRP) for a multi-component production system. This exercise involves calculating planned order releases for different items across multiple periods.**Problem Description:**- **Product Composition:** - One unit of A is composed of two units of B and three units of C. - Each B is composed of one unit of F. - C is made of one unit of D, one unit of E, and two units of F.- **Inventory and Lot-Sizing Information:** - Items A, B, and C have on-hand inventories of 28, 40, and 36 units, respectively. - Items A, B, and C use lot-for-lot (L4L) as their lot-sizing technique. - Items D, E, and F require multiple units of 62, 110, and 90, respectively, to be purchased.- **Scheduled Receipts and Lead Times:** - B has scheduled receipts of 15 units in Period 1. - No scheduled receipts exist for other items. - Lead times are one period for Items A, B, and D, and two periods for Items C, E, and F.- **Gross Requirements:** - A: 15 units in Period 1, 12 units in Period 2, 50 units in Period 6, and 50 units in Period 8.**Table Explanation:**The table is divided by items (A, B, C, D) and contains several key headings for each period:- **Gross Requirements**: The total demand for the item in that period.- **Scheduled Receipts**: Items which are due to be received in that period.- **Projected Available Balance**: Expected inventory level at the end of the period considering scheduled receipts and the net requirements.- **Net Requirements**: The actual quantity needed to be produced or ordered in that period.- **Planned Order Receipts**: When you plan to receive the orders previously placed.- **Planned Order Releases**: When you need to place orders to meet future demand.The table extends over 8 periods, and you are tasked to fill in the planned order releases for all items, ensuring no cells are left blank (enter "0" where no order is needed).Please carefully analyze **Material Requirements Planning (MRP) Table Explanation**This table is used for Material Requirements Planning (MRP) and consists of two sections, one for Item E and one for Item F. Each section includes various elements that help in planning inventory and production schedules.### Item E- **Gross Requirements**: Represents the total demand for the item.- **Scheduled Receipts**: Orders that are due to be received at specific times.- **Projected Available Balance (OH = 0)**: The expected inventory level, initialized at zero.- **Net Requirements (LT = 2)**: The actual amount needed, considering scheduled receipts and inventory.- **Planned Order Receipts (SS = 0)**: Orders that are planned and expected to be received within a lead time of 2 periods.- **Planned Order Releases (Q = 110)**: When orders are planned to be released, with a lot size quantity of 110.### Item F- **Gross Requirements**: Similar structure for demand as Item E.- **Scheduled Receipts**: Incoming orders scheduled to be received.- **Projected Available Balance (OH = 0)**: Inventory level, also starting from zero.- **Net Requirements (LT = 2)**: The necessary amount needed, after considering incoming inventory.- **Planned Order Receipts (SS = 0)**: Orders expected based on a lead time of 2 periods.- **Planned Order Releases (Q = 90)**: Orders planned to be released, with a lot size quantity of 90.### Diagram ExplanationThe diagram consists of multiple empty columns represented by arrows, indicating periods over which these measurements and actions are planned. Each heading specifies a different aspect of the item's inventory and order planning process.This layout facilitates the planning and scheduling of inventory management by providing a structured approach to determining when orders are needed and in what quantities, based on forecasted demands and current inventory levels.

Projected Available balance = projected Available balance of previous week + scheduled receipts if any + planned receipts if any – Gross Requirements Net Requirements = Gross requirement – Scheduled receipts if any – projected on-hand inventory of previous week. If the calculation comes in negative, then the net requirement is 0.