Please advise with Homework Chapter 20 Problem 7. Thank you. Please provide step by step explantion so I can use it for notes ### Educational Content: MRP Planning Schedule**Overview:**This material is aimed at explaining the calculation and organization of a Material Requirements Planning (MRP) schedule. The process will demonstrate how to determine gross and net requirements, order releases, and receipt dates based on the described manufacturing setup.**Text Description:**- A is composed of subcomponents: 3 units of B, 1 unit of C, and 2 units of D.- B consists of 2 units of E and 1 unit of D.- C consists of 1 unit of B and 2 units of E.- E is made up of 1 unit of F.- Items B, C, E, and F have a one-week lead time.- Items A and D have a two-week lead time.**Assumptions:**- Lot-for-lot (L4L) sizing is used for items A, B, and F.- Fixed lot sizes of 50, 200, and 200 are used for items C, D, and E, respectively.- Initial inventories: C, D, E, F = 30, 50, and 150 respectively; all others have zero.- Future scheduled receipts: 10 units of A (Week 2), 80 units of E (Week 1), 50 units of F (Week 1).- No other scheduled receipts.- Calculations begin by working backward from requirements in Week 8.**Task:**Develop an MRP schedule with:1. Gross requirements2. Scheduled receipts3. Projected available balance4. Net requirements5. Planned order receipts6. Planned order releases**MRP Schedule Layout:**| Period | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 ||---------|---|---|---|---|---|---|---|---|| **Item A** | | | | | | | | || Gross requirements | | | | | | | | || Scheduled receipts | | | | | | | | || Projected available balance | | | | | | | | || Net requirements | | | | The table is organized to represent an inventory management system with two items, E and F, each having distinct production and inventory parameters.### Item E:- **Parameters:** - Order Quantity (Q) = 50 - On Hand (OH) = 50 - Lead Time (LT) = 1 - Safety Stock (SS) = 0 - Gross Requirements - Scheduled Receipts - Projected Available Balance - Net Requirements - Planned Order Receipts - Planned Order Releases### Item F:- **Parameters:** - Order Quantity (Q) = 200 (Lot for Lot - L4L) - On Hand (OH) = 150 - Lead Time (LT) = 1 - Safety Stock (SS) = 0 - Gross Requirements - Scheduled Receipts - Projected Available Balance - Net Requirements - Planned Order Receipts - Planned Order Releases### Graphical Layout:- The table contains a row for "Planned order releases" with columns representing time periods, each indicated by an empty cell. This layout suggests a timeline for inventory management actions, such as ordering and fulfilling requirements over a series of periods.**Note:** The table is filled with numerous blank cells, typically suggesting placeholders for future entries or actions within the inventory schedule.

Find the Calculation methods below: Project on hand = Project on hand - Gross requirementsNet…

One unit of A is made of three units of B. one unit of C, and two units of D. B is composed of two units of E and one unit of D. C is made of one unit of B and two units of E. E is made of one unit of F. Items B. C. E. and F have one-week lead times; A and D have lead times of two weeks. Assume that lot-for-lot (L4L) lot sizing is used for Items A, B, and F: lots of size 50, 50, and 200 are used for Items C, D, and E. respectively. Items C, E, and F have on-hand (beginning) inventories of 10, 50, and 150, respectively; all other items have zero beginning inventory. We are scheduled to receive 10 units of A in Week 2, 50 units of E in Week 1, and also 50 units of F in Week 1. There are no other scheduled receipts. If 30 units of A are required in Week 8, use the low-level-coded bill-of-materials to find the necessary planned order releases for all components. 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.)

One unit of A is made of three units of B. one unit of C, and two units of D. B is composed of two units of E and one unit of D. C is made of one unit of B and two units of E. E is made of one unit of F. Items B. C. E. and F have one-week lead times; A and D have lead times of two weeks. Assume that lot-for-lot (L4L) lot sizing is used for Items A, B, and F: lots of size 50, 50, and 200 are used for Items C, D, and E. respectively. Items C, E, and F have on-hand (beginning) inventories of 10, 50, and 150, respectively; all other items have zero beginning inventory. We are scheduled to receive 10 units of A in Week 2, 50 units of E in Week 1, and also 50 units of F in Week 1. There are no other scheduled receipts. If 30 units of A are required in Week 8, use the low-level-coded bill-of-materials to find the necessary planned order releases for all components. 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.)

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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Question

Please advise with Homework Chapter 20 Problem 7. Thank you. Please provide step by step explantion so I can use it for notes

### Educational Content: MRP Planning Schedule

**Overview:**
This material is aimed at explaining the calculation and organization of a Material Requirements Planning (MRP) schedule. The process will demonstrate how to determine gross and net requirements, order releases, and receipt dates based on the described manufacturing setup.

**Text Description:**
- A is composed of subcomponents: 3 units of B, 1 unit of C, and 2 units of D.
- B consists of 2 units of E and 1 unit of D.
- C consists of 1 unit of B and 2 units of E.
- E is made up of 1 unit of F.
- Items B, C, E, and F have a one-week lead time.
- Items A and D have a two-week lead time.

**Assumptions:**
- Lot-for-lot (L4L) sizing is used for items A, B, and F.
- Fixed lot sizes of 50, 200, and 200 are used for items C, D, and E, respectively.
- Initial inventories: C, D, E, F = 30, 50, and 150 respectively; all others have zero.
- Future scheduled receipts: 10 units of A (Week 2), 80 units of E (Week 1), 50 units of F (Week 1).
- No other scheduled receipts.
- Calculations begin by working backward from requirements in Week 8.

**Task:**
Develop an MRP schedule with:
1. Gross requirements
2. Scheduled receipts
3. Projected available balance
4. Net requirements
5. Planned order receipts
6. Planned order releases

**MRP Schedule Layout:**

| Period | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
|---------|---|---|---|---|---|---|---|---|
| **Item A** | | | | | | | | |
| Gross requirements | | | | | | | | |
| Scheduled receipts | | | | | | | | |
| Projected available balance | | | | | | | | |
| Net requirements | | | |

The table is organized to represent an inventory management system with two items, E and F, each having distinct production and inventory parameters.

### Item E:
- **Parameters:**
- Order Quantity (Q) = 50
- On Hand (OH) = 50
- Lead Time (LT) = 1
- Safety Stock (SS) = 0
- Gross Requirements
- Scheduled Receipts
- Projected Available Balance
- Net Requirements
- Planned Order Receipts
- Planned Order Releases

### Item F:
- **Parameters:**
- Order Quantity (Q) = 200 (Lot for Lot - L4L)
- On Hand (OH) = 150
- Lead Time (LT) = 1
- Safety Stock (SS) = 0
- Gross Requirements
- Scheduled Receipts
- Projected Available Balance
- Net Requirements
- Planned Order Receipts
- Planned Order Releases

### Graphical Layout:
- The table contains a row for "Planned order releases" with columns representing time periods, each indicated by an empty cell. This layout suggests a timeline for inventory management actions, such as ordering and fulfilling requirements over a series of periods.

**Note:** The table is filled with numerous blank cells, typically suggesting placeholders for future entries or actions within the inventory schedule.

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