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
Scheduled receipt
On hand
Net requirement
3,750
Scheduled receipt
On hand
Net requirement
900
Planned order receipt
900
Planned order release
900
Level: 2
Parent: electrical unit
Quantity: 1X
Item: switch
Lead Time: 1 week
Lot Size: 12
Week No.
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirement
900
Scheduled receipt
Item: knob
Lead Time: 1 week
Lot Size: 25
Week No.
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirement
900
Scheduled receipt
200
On hand
200
200
200
14.14# (a)
2
D
1
3
E
1
1
F
1
2
G
1
2
H
1
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
Scheduled receipt
Lot
Projected on hand
Net requirement
0
Planned receipt
0
Scheduled receipt
Lot
Projected on hand
4
4
1
Net requirement
Planned receipt
14.15# (a)
D
20
E
40
F
20
G
20
(b)
Lot
1
0
—
—
0
A
Gross requirement
10
Scheduled receipt
Lot
Projected on hand
0
0
0
0
10
Net requirement
10
Planned receipt
Scheduled receipt
Lot
Projected on hand
2
2
0
Net requirement
Planned receipt
Planned release
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.
On hand 30
30
Net
60
P.O. receipt
60
P.O. release
60
Gross requirement
180
40
◼ Ask the supplier of G to expedite production or
P.O. receipt
160
40
P.O. release
160
40
Gross requirement
On hand 20
Net
P.O. receipt
P.O. release
6
Required Date
A
Order Release
Required Date
D
Order Release
Required Date
F
Order Release
3
7
Gross requirement
Net
P.O. receipt
P.O. release
(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
Net requirement
8
Planned order receipt
8
Planned order release
Level: 1
Parent: A
Quantity: 3
Item: D
Lead Time: 1 week
Lot Size: L4L
Week No.
1
2
3
4
5
6
7
8
9
10
Gross requirement
24
Scheduled receipt
On hand
0
0
0
0
0
Net requirement
16
Planned order receipt
16
Planned order release
16
14.20* (a)
A
1
2
3
4
5
6
7
Gross requirement
30
14.20* (c)
P.O. receipt
P.O. release
30
B
1
2
3
4
5
6
7
Gross requirement
90
On hand 30
30
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
P.O. release
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
Net req.
4
7
10
5
Ord rec.
4
7
10
5
Net req.
2
10
5
Ord rec.
2
10
5
Beg inv
40
10
10
0
0
0
0
0
0
0
0
End inv
10
10
0
0
0
0
0
0
0
0
0
Ord rcpt
30
30
70
20
10
80
50
Lot size = EOQ
Setup cost = $150
Lead time = 1 week
1
3
4
6
8
10
11
12
Gross requirement
40
30
70
10
50
Scheduled receipt
On hand (beginning)
40
10
10
27
27
54
21
21
45
45
On hand (end of period)
10
27
27
54
41
21
11
45
52
Net requirements
30
3
16
5
57
57
57
57
Planned order release
57
57
57
57
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
—
—