14) There are 200 units in inventory at the start of week 1. What are the net requirements in week 4 if
there is a scheduled receipt of 100 units every other week and a two week production lead time?
1
2
3
4
5
Gross Requirements
550
450
400
400
500
Scheduled receipts
100
0
100
0
100
Projected ending Inventory
Net Requirements
Planned Receipts
350
450
Planned Orders
350
300
A) 250
B) 300
C) 350
D) 400
15) There are 50 units in inventory at the start of week 1 for this company, which runs a lot-for-lot MRP
system. There is a one week lead time for all shipping and production quantities regardless of volume.
What are the quantities of the planned orders for this item for the first six weeks?
1
2
3
4
8
Gross Requirements
50
20
30
Scheduled receipts
Projected ending
Inventory
Net Requirements
Planned Receipts
Planned Orders
A) 20, 30, 0, 40, 0, 0
B) 35, 0, 60, 0, 0, 0
C) 5, 30, 0, 40, 20, 0
D) 35, 0, 0, 40, 20, 0
16) Material requirements planning is used to manage independent demand inventory.
17) MRP uses backward scheduling.
18) Gross requirements in an MRP record can be met by inventory from previous weeks, scheduled
receipts, or planned receipts.
19) In a bill of material, a parent may have many children but a child may have only one parent.
20) MRP nervousness refers to the notion that a small change at the top of a bill of material can have
drastic effects on items farther down the bill of material.
21) Company B has no inventory at any level and a structure tree as shown below. They will need 145 E’s
to make 12 units of end item X.
22) Throughout every MRP record, ending inventory is equal to the ending inventory from the previous
period, plus the master production schedule quantity, minus the orders booked for that period.
23) Component J is ordered on February 1, is received, and is ready to use on February 8. Its planning
lead time is seven days.
24) A(n) ________ is a record or graphical rendering that shows how all the subassemblies, intermediates,
parts, and raw materials are put together to make the Level 0 item.
25) The process of ________ occurs when a planner works backwards from the master production
schedule and the product structure tree to determine when all parts and subassemblies must be ordered
and assembled in order to meet MPS due dates.
26) Cow Company used the master schedule to monitor key resource requirements, such as determining
how many workers and the number of machine hours would be needed for each production period. This
approach is known as ________.
27) In material requirements planning, units already on order are referred to as ________ receipts and
new orders are termed ________ receipts.
28) What are three advantages of using an MRP system?
29) What organizational disciplines are required in order for an organization to successfully run a
material requirements planning system?
30) Consider the product structure tree shown below:
Assume that the company using this product structure tree has 5 items each at the 0 level, 10 items each
at the 1 level and 20 items each at the 2 level. How many units of A, B, and E will the company need to
acquire in order to ship an order of 20 X’s?
31) Consider the product structure tree shown below:
With a beginning inventory of twenty for all components on level one, five for all components on level
two, and zero for all components on level three and finished items, how many of each component on
level three are needed to produce 25 product X’s?
32) Consider the product structure tree shown below:
With a beginning inventory of fifteen for all components on level one, twenty for all components on level
two, and zero for all components on level three and finished items, how many of each component on
level three are needed to produce 20 product X’s?
29
33) What is the planned order for head assemblies in Week 2?
Item
Week
1
2
6
Mechanical Cat
MPS Due Date
75
250
LT = 1 week
Start Assembly
Item
Gross Requirements
Head Assembly
Scheduled receipts
100
LT = 1 week
Projected ending
Inventory
Begin Inv = 100
Net Requirements
Planned Receipts
Planned Orders
Gross Requirements
Whiskers
Scheduled receipts
LT = 1 week
Projected ending
Inventory
Begin Inv =
1200
Net Requirements
Planned Receipts
Planned Orders
30
Copyright © 2019 Pearson Education, Inc.
Answer: 300
Item
Week
1
2
3
Mechanical Cat
MPS Due Date
75
125
LT = 1 week
Start Assembly
75
125
240
Item
Gross
Requirements
75
125
240
Head Assembly
Scheduled receipts
100
LT = 1 week
Projected ending
Inventory
125
0
60
Begin Inv = 100
Net Requirements
240
Q = 100
Planned Receipts
300
Planned Orders
300
300
Gross
Requirements
0
7200
7200
Whiskers
Scheduled receipts
LT = 1 week
Projected ending
Inventory
1200
0
0
Begin Inv =
1200
Net Requirements
0
6000
7200
Q = 240
Planned Receipts
6000
7200
Planned Orders
6000
7200
4800
Diff: 3
Reference: 12.2 Material Requirements Planning
Keywords: MRP, material requirements planning, planned order release
AACSB: Analytical Thinking
LO: 12.5: Complete the calculations for the MRP record and interpret the results.
34) What are the net requirements for head assemblies in Week 4?
Item
Week
1
5
6
Mechanical Cat
MPS Due Date
300
250
LT = 1 week
Start Assembly
Item
Gross Requirements
Head Assembly
Scheduled receipts
100
LT = 1 week
Projected ending Inventory
Begin Inv = 100
Net Requirements
Planned Receipts
Planned Orders
Gross Requirements
Whiskers
Scheduled receipts
LT = 1 week
Projected ending Inventory
Begin Inv = 1200
Net Requirements
Planned Receipts
Planned Orders
Mechanical Cat
MPS Due Date
125
240
300
250
LT = 1 week
Start Assembly
75
125
240
300
250
Item
Gross Requirements
75
125
240
300
250
Head Assembly
Scheduled receipts
100
LT = 1 week
Inventory
125
60
60
10
10
Begin Inv = 100
Net Requirements
240
240
190
Q = 100
Planned Receipts
300
300
200
Planned Orders
300
300
200
Gross Requirements
Whiskers
Scheduled receipts
LT = 1 week
Inventory
Begin Inv = 1200
Net Requirements
Q = 240
Planned Receipts
Planned Orders
35) What is the planned order for whiskers in Week 2?
Item
Week
1
5
6
Mechanical Cat
MPS Due Date
300
250
LT = 1 week
Start Assembly
Item
Gross Requirements
Head Assembly
Scheduled receipts
100
LT = 1 week
Projected ending Inventory
Begin Inv = 100
Net Requirements
Planned Receipts
Planned Orders
Gross Requirements
Whiskers
Scheduled receipts
LT = 1 week
Projected ending Inventory
Begin Inv = 1200
Net Requirements
Planned Receipts
Planned Orders
Mechanical Cat
MPS Due Date
125
240
300
250
LT = 1 week
Start Assembly
75
125
240
300
250
Item
Gross Requirements
75
125
240
300
250
Head Assembly
Scheduled receipts
100
LT = 1 week
Inventory
125
60
60
10
10
Begin Inv = 100
Net Requirements
240
240
190
Q = 100
Planned Receipts
300
300
200
Planned Orders
300
300
200
Gross Requirements
Whiskers
Scheduled receipts
LT = 1 week
Inventory
Begin Inv = 1200
Net Requirements
Q = 240
Planned Receipts
Planned Orders
36) What are the net requirements for whiskers in Week 3?
Item
Week
1
5
6
Mechanical Cat
MPS Due Date
300
250
LT = 1 week
Start Assembly
Item
Gross Requirements
Head Assembly
Scheduled receipts
100
LT = 1 week
Projected ending Inventory
Begin Inv = 100
Net Requirements
Planned Receipts
Planned Orders
Gross Requirements
Whiskers
Scheduled receipts
LT = 1 week
Projected ending Inventory
Begin Inv = 1200
Net Requirements
Planned Receipts
Planned Orders
Mechanical Cat
MPS Due Date
125
240
300
250
LT = 1 week
Start Assembly
75
125
240
300
250
Item
Gross Requirements
75
125
240
300
250
Head Assembly
Scheduled receipts
100
LT = 1 week
Inventory
125
60
60
10
10
Begin Inv = 100
Net Requirements
240
240
190
Q = 100
Planned Receipts
300
300
200
Planned Orders
300
300
200
Gross Requirements
Whiskers
Scheduled receipts
LT = 1 week
Inventory
Begin Inv = 1200
Net Requirements
Q = 240
Planned Receipts
Planned Orders
37) What is Projected ending inventory for Front Leg Assemblies in Week 3
Item
Week
1
5
6
Mechanical Cat
MPS Due Date
300
250
LT = 1 week
Start Assembly
Item
Gross Requirements
Head Assembly
Scheduled receipts
90
LT = 1 week
Projected ending Inventory
Begin Inv = 100
Net Requirements
Planned Receipts
Planned Orders
Gross Requirements
Whiskers
Scheduled receipts
2000
LT = 1 week
Projected ending Inventory
Begin Inv = 1200
Net Requirements
Planned Receipts
Planned Orders
Item
Week
1
2
3
4
5
6
Mechanical Cat
MPS Due Date
75
125
240
300
250
LT = 1 week
Start Assembly
75
125
240
300
250
Item
Gross Requirements
150
250
480
600
500
Front Leg Assembly
Scheduled receipts
90
LT = 1 week
Projected ending
Inventory
15
0
0
0
0
0
Begin Inv = 75
Net Requirements
235
480
600
500
L4L
Planned Receipts
235
480
600
500
Planned Orders
235
480
600
500
Gross Requirements
1175
2400
3000
2500
Claws
Scheduled receipts
2000
LT = 1 week
Projected ending
Inventory
825
0
0
0
0
0
Begin Inv = 0
Net Requirements
1575
3000
2500
L4L
Planned Receipts
1575
3000
2500
Planned Orders
1575
3000
2500
Diff: 3
Reference: 12.2 Material Requirements Planning
Keywords: MRP, material requirements planning, projected ending inventory
AACSB: Analytical Thinking
LO: 12.5: Complete the calculations for the MRP record and interpret the results.