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234 CHAPTER 14 MA T E R I A L REQ U I R E M E N T S PL A N N I N G ( M RP) AND E RP
Level: 1
Parent: 20 fan
Quantity: 1X
Item: fan assembly
Lead Time: 3 weeks
Lot Size: L4L
Week No.
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirement
900
Scheduled receipt
On hand 150
150
Net requirement
750
Planned order receipt
750
Planned order release
750
Level: 1
Parent: 20 fan
Quantity: 1X
Item: electrical unit
Lead Time: 1 week
Lot Size: L4L
Week No.
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirement
900
Scheduled receipt
On hand
Net requirement
900
Planned order receipt
900
Planned order release
900
Level: 2
Parent: housing
Quantity: 1X
Item: frame
Lead Time: 2 weeks
Lot Size: L4L
Week No.
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirement
800
Scheduled receipt
On hand
Net requirement
800
Planned order receipt
800
Planned order release
800
Level: 2
Parent: housing
Quantity: 2X
Item: supports
Lead Time: 1 week
Lot Size: 100
Week No.
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirement
1,600
Scheduled receipt
On hand
50
Net requirement
1,550
Planned order receipt
1,600
Planned order release
1,600
Level: 2
Parent: housing
Quantity: 1X
Item: handle
Lead Time: 1 week
Lot Size: 500
Week No.
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirement
800
Scheduled receipt
On hand
400
100
Net requirement
400
Planned order receipt
500
Planned order release
500
Level: 2
Parent: fan assembly
Quantity: 1X
Item: hub
Lead Time: 1 week
Lot Size: L4L
Week No.
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirement
750
Scheduled receipt
On hand
Net requirement
750
Planned order receipt
750
Planned order release
750
CHAPTER 14 M A T ER I A L RE Q U I R E M EN T S PL A N N I N G (M RP) AND E RP 235
14.14# (a)
Level: 2
Parent: fan assembly
Quantity: 5X
Item: blades
Lead Time: 2 weeks
Lot Size: 100
Week No.
1
2
3
4
5
6
7
8
9
10
11
12
Planned order receipt
3,800
Planned order release
3,800
Level: 2
Parent: electrical unit
Quantity: 1X
Item: motor
Lead Time: 1 week
Lot Size: L4L
Week No.
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirement
900
On hand 20
20
8
Net requirement
880
Planned order receipt
888
Planned order release
888
Level: 2
Parent: electrical unit
Quantity: 1X
Net requirement
Planned order receipt
700
Planned order release
700
Level
Component
Quantity
0
A
1
1
B
1
2
C
1
3
E
1
3
C
1
Note: With low-level coding, C would be a Level 3 code.
236 CHAPTER 14 MA T E R I A L REQ U I R E M E N T S PL A N N I N G ( M RP) AND E RP
(b)
Low-
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
1
0
—
—
0
A
Gross requirement
10
for
Scheduled receipt
Lot
Projected on hand
0
Net requirement
10
Planned receipt
10
Planned release
10
Low-
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
1
2
—
—
1
B
Gross requirement
10A
for
Scheduled receipt
Lot
Projected on hand
2
2
2
2
2
2
2
0
Net requirement
8
Planned receipt
8
Planned release
8
Low-
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
1
5
—
—
1
F
Gross requirement
10A
for
Scheduled receipt
Lot
Projected on hand
5
5
5
5
5
5
5
0
Net requirement
5
Planned receipt
5
Planned release
5
Low-
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
1
5
—
—
2
D
Gross requirement
8B
for
Scheduled receipt
Lot
Projected on hand
5
5
5
5
5
5
0
0
Net requirement
3
Planned receipt
3
Planned release
3
Low-
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
3
1
—
—
2
G
Gross requirement
5F
for
Scheduled receipt
Lot
Projected on hand
1
1
1
1
1
1
0
0
Net requirement
4
Planned receipt
4
Planned release
4
Low-
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
1
10
—
—
2
H
Gross requirement
5F
for
Scheduled receipt
Lot
Projected on hand
10
10
10
10
10
10
5
5
Net requirement
0
Planned receipt
0
Planned release
0
CHAPTER 14 M A T ER I A L RE Q U I R E M EN T S PL A N N I N G (M RP) AND E RP 237
14.15# (a)
(b)
Low-
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
2
10
—
—
3
C
Gross requirement
0H
8B
Planned release
0
0
Low-
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
1
4
—
—
3
E
Gross requirement
3H,D
Planned release
0
Ten units are required for production and 10 each of B and F for field service repair:
Component
Quantity
A
10
B
20
C
40
H
20
Low-
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Planned release
10
Low-
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
1
2
—
—
1
B
Gross requirement
10M
10A
238 CHAPTER 14 MA T E R I A L REQ U I R E M E N T S PL A N N I N G ( M RP) AND E RP
Low–
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
1
5
—
—
1
F
Gross requirement
10M
10A
for
Scheduled receipt
Lot
Projected on hand
5
5
5
5
5
5
0
0
Net requirement
5
10
Planned receipt
5
10
Planned release
5
10
Low–
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
1
5
—
—
2
D
Gross requirement
8B
10B
for
Scheduled receipt
Lot
Projected on hand
5
5
5
5
5
0
0
0
Net requirement
3
10
Planned receipt
3
10
Planned release
3
10
Low–
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
3
1
—
—
2
G
Gross requirement
5F
10F
for
Scheduled receipt
Lot
Projected on hand
1
1
1
1
1
0
0
0
Net requirement
4
10
Planned receipt
4
10
Planned release
4
10
Note: M (in items B and F) means a repair or maintenance item.
Low–
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
1
10
—
—
2
H
Gross requirement
5F
10F
for
Scheduled receipt
Lot
Projected on hand
10
10
10
10
10
5
0
0
Net requirement
5
Planned receipt
5
Planned release
5
Low–
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
2
10
—
—
3
C
Gross requirement
13H,B
10B
for
Scheduled receipt
Lot
Projected on hand
10
10
10
10
10
0
0
0
Net requirement
3
10
Planned receipt
3
10
Planned release
3
10
Low–
Lot
Lead
On
Safety
Level
Item
Period (week)
Size
Time
Hand
Stock
Allocated
Code
ID
1
2
3
4
5
6
7
8
Lot
1
4
—
—
3
E
Gross requirement
3D
15H,D
Lot
Projected on hand
4
4
4
4
1
0
0
0
Net requirement
14
Planned receipt
14
Planned release
14
CHAPTER 14 M A T ER I A L RE Q U I R E M EN T S PL A N N I N G (M RP) AND E RP 239
14.16 (a) Only Item G has changed because it has no subassem-
blies or components.
◼ Ask the supplier of G to expedite production or
(b)
14.17 (a)
(b)
B
1
2
3
4
5
6
7
8
Gross requirement
90
On hand 20
20
0
Net
160
40
240 CHAPTER 14 MA T E R I A L REQ U I R E M E N T S PL A N N I N G (M RP) AND E RP
14.20* (a)
14.20* (c)
F
1
2
3
4
5
6
7
8
Gross requirement
180
40
On hand 20
20
0
Net
160
40
P.O. receipt
160
40
P.O. release
160
40
14.19*
Level: 0
Parent: —
Quantity:
Item: A
Lead Time: 1 week
Lot Size: L4L
Week No.
1
2
3
4
5
6
7
8
9
10
Gross requirement
10
Scheduled receipt
On hand 2
2
2
2
2
2
2
On hand 4
4
4
4
4
4
Net requirement
20
Planned order receipt
20
Planned order release
20
Level: 1
Parent: A
Quantity: 2
Item: F
Lead Time: 2 weeks
Lot Size: L4L
Week No.
1
2
3
4
5
6
7
8
9
10
Gross requirement
16
Scheduled receipt
Treadmill
1
2
3
4
5
6
7
8
Gross requirement
50
On hand 20
20
Net
30
On hand 10
10
Net
20
P.O. receipt
20
Net
60
P.O. receipt
60
P.O. release
60
242 CHAPTER 14 MA T E R I A L REQ U I R E M E N T S PL A N N I N G (M RP) AND E RP
14.22 Lot-for-lot ordering policy:
Week
1
2
3
4
5
6
7
8
9
10
11
12
Gr req
30
40
30
70
20
10
80
50
where D = period demand, S = setup or order cost, H = holding cost.
Reorder point:
330
Reorder point Demand during lead time units week 1 week
12
= =
Item G
Week
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Total req.
5
7
10
5
Item H
Week
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Total req.
5
7
10
5
On hand
10
10
10
10
10
5
—
—
