Resource Planning ⚫ CHAPTER 11
11–21
b. In week 1, an order for 155 units of item C should be released and an order for
c. This solution was developed using the Material Requirements Planning module in
OM Solver. This software shows the cascading changes required by adding a new
Solver – Material Requirements Planning
Master Production Schedule
1 2 3 4 5 6 7 8 9 10
Item A MPS Start Descr: 125 95 200 150 130
Item B MPS Start Descr: 80 70
Material Requirements Planning
Item C Descr: Period (P) for POQ Lot Size (FOQ)
Lead Time 3
Safety Stock
Usage Quantity for Item: A 2 B
1 2 3 4 5 6 7 8 9 10
Gross Requirements 250 190 400 300 260
Scheduled Receipts 200
Projected On-Hand Inventory 85 85 35 35 0 0 0 0 0 0 0
Planned Receipts 155 400 300 260
Enter data in yellow shaded areas.
L4L Rule
Use second finished item
As items D and E have multiple parents, the required changes are substantially
more complex. These changes are reflected in the records below. It should be
noted that planner intervention will be required for both of these items.
⚫ PART 2 ⚫ Managing Customer Demand
11–22
Item D Descr: Period (P) for POQ 3 Lot Size (FOQ)
Lead Time 2
Safety Stock
Usage Quantity for Item: A 2 B 1 C 1
1 2 3 4 5 6 7 8 9 10
Gross Requirements 155 650 380 190 660 370 260
Scheduled Receipts
Projected On-Hand Inventory 625 470 -180 850 660 0260 260 000
Planned Receipts 1410 630
Planned Order Releases 1410 630
Item E Descr: Period (P) for POQ Lot Size (FOQ) 800
Lead Time 1
Safety Stock
Usage Quantity for Item: A 2 B 2 C D 1
1 2 3 4 5 6 7 8 9 10
Gross Requirements 1410 250 160 820 400 440 260
Scheduled Receipts 800
Projected On-Hand Inventory 350 -260 290 130 110 510 70 70 610 610 610
Planned Receipts 800 800 800 800
Planned Order Releases 800 800 800 800
POQ Rule
FOQ Rule
26. MRP for Figure 11.45
a. This solution was developed using the Material Requirements Planning module in
OM Solver.
Item A MPS Start Descr: 120 120 120 120
Enter data in yellow shaded areas.
Use second finished item
Material Requirements Planning
Item C Descr: Period (P) for POQ Lot Size (FOQ)
Lead Time 3
Safety Stock 0
Usage Quantity for Item: A 2 B
1 2 3 4 5 6 7 8 9 10
Gross Requirements 240 240 240 240
Scheduled Receipts 150
Projected On-Hand Inventory 125 125 35 35 0 0 0 0 0 0 0
Planned Receipts 205 240 240
Planned Order Releases 205 240 240
Resource Planning ⚫ CHAPTER 11
11–23
Item D Descr: Period (P) for POQ Lot Size (FOQ) 700
Lead Time 3
Safety Stock 0
Usage Quantity for Item: A 3 B C
1 2 3 4 5 6 7 8 9 10
Gross Requirements 360 360 360 360
Scheduled Receipts 450
Projected On-Hand Inventory 0 0 90 90 430 70 70 70 410 410 410
Planned Receipts 700 700
Planned Order Releases 700 700
Item E Descr: Period (P) for POQ Lot Size (FOQ) 700
Lead Time 4
Safety Stock 0
Usage Quantity for Item: A 2 B C 1 D
1 2 3 4 5 6 7 8 9 10
Gross Requirements 205 480 240 480 240
Scheduled Receipts 700
Projected On-Hand Inventory 235 730 250 250 10 230 230 230 690 690 690
Planned Receipts 700 700
Planned Order Releases 700 700
Item F Descr: Period (P) for POQ Lot Size (FOQ)
Lead Time 2
Safety Stock 50
Usage Quantity for Item: A B C D E 1
1 2 3 4 5 6 7 8 9 10
Gross Requirements 700 700
Scheduled Receipts
Projected On-Hand Inventory 750 50 50 50 50 50 50 50 50 50 50
Planned Receipts 700
Planned Order Releases 700
Item G Descr: Period (P) for POQ Lot Size (FOQ)
Lead Time 1
Safety Stock 0
Usage Quantity for Item: A B C D E 2 F
1 2 3 4 5 6 7 8 9 10
Gross Requirements 1400 1400
Scheduled Receipts 1400
Projected On-Hand Inventory 0 0 0 0 0 0 0 0 0 0 0
Planned Receipts 1400
Planned Order Releases 1400
b. In week 1, an order for 205 units of item C, an order for 700 units of item D, and an
order for 700 units of item E should be released.
⚫ PART 2 ⚫ Managing Customer Demand
11–24
27. MRP for Figure 11.23
A
C(1)
B(3)
E(2)
D(1)
G(1)
D(1)
F(1)
LT = 1
LT = 3LT = 2
LT = 3 LT = 6 LT = 1 LT = 3
LT = 3
Item
Data Category
B
C
D
E
F
G
Lot-size rule
L4L
L4L
POQ (P = 2)
L4L
L4L
FOQ = 100
Lead time
2 weeks
3 weeks
3 weeks
6 weeks
1 week
3 weeks
Safety stock
30
10
0
0
0
0
Scheduled receipts
150
(wk 2)
50
(wk 2)
None
400
(wk 6)
40
(wk 3)
None
On-hand inventory
30
20
60
400
0
0
Item: A
Lot Size: 50
Week
Final Asm. Lead Time: 1 wk
Quantity On Hand: 5
1
2
3
4
5
6
7
8
9
10
MPS Start
50
50
50
50
Item: B
Lot Size:
L4L
Description:
Lead Time:
2 weeks
Safety Stock:
30 units
Week
1
2
3
4
5
6
7
8
9
10
Gross requirements
150
150
150
150
Scheduled receipts
150
Projected on hand 30
30
30
30
30
30
30
30
30
30
30
Planned receipts
150
150
150
Planned order releases
150
150
150
Item: C
Lot Size:
L4L
Description:
Lead Time:
3 weeks
Safety Stock:
10 units
Week
1
2
3
4
5
6
7
8
9
10
Gross requirements
50
50
50
50
Scheduled receipts
50
Projected on hand 20
20
20
20
20
20
10
10
10
10
10
Planned receipts
40
50
50
Resource Planning ⚫ CHAPTER 11
11–25
Item: D
Lot Size:
POQ = 2
Description:
Lead Time:
3 weeks
Safety Stock:
0 units
Week
1
2
3
4
5
6
7
8
9
10
Gross requirements
40
150
50
200
150
Scheduled receipts
Projected on hand 60
60
60
20
50
0
150
0
0
0
0
Planned receipts
180
350
Planned order releases
180
350
Item: E
Lot Size:
L4L
Description:
Lead Time:
6 weeks
Safety Stock:
0 units
Week
1
2
3
4
5
6
7
8
9
10
Gross requirements
300
300
300
Scheduled receipts
400
Projected on hand 400
400
400
400
100
100
200
0
0
0
0
Planned receipts
100
Planned order releases
100
Item: F
Lot Size:
L4L
Description:
Lead Time:
1 week
Safety Stock:
0 units
Week
1
2
3
4
5
6
7
8
9
10
Gross requirements
40
50
50
Scheduled receipts
40
Projected on hand 0
0
0
0
0
0
0
0
0
0
0
Planned receipts
50
50
Planned order releases
50
50
Item: G
Lot Size:
FOQ = 100
Description:
Lead Time:
3 weeks
Safety Stock:
0 units
Week
1
2
3
4
5
6
7
8
9
10
Gross requirements
50
50
Scheduled receipts
Projected on hand 0
0
0
0
50
0
0
0
0
0
0
Planned receipts
100
Planned order releases
100
⚫ PART 2 ⚫ Managing Customer Demand
11–26
28. Material Requirements Plan for Product A
This solution was developed using the Material Requirements Planning module in
OM Solver.
Inputs
Solver – Material Requirements Planning
Master Production Schedule
1 2 3 4 5 6 7 8 9 10
Item A MPS Start Descr: 100 100 100 100 100 100 100 100
Item B MPS Start Descr:
Material Requirements Planning
Item C Descr: Period (P) for POQ Lot Size (FOQ)
Lead Time 1
Safety Stock
Usage Quantity for Item: A 1 B
1 2 3 4 5 6 7 8 9 10
Gross Requirements 100 100 100 100 100 100 100 100
Scheduled Receipts
Projected On-Hand Inventory 225 125 25 0 0 0 0 0 0 0 0
Planned Receipts 75 100 100 100 100 100
Planned Order Releases 75 100 100 100 100 100
Enter data in yellow shaded areas.
L4L Rule
Use second finished item
Item D Descr: Period (P) for POQ Lot Size (FOQ)
Lead Time 2
Safety Stock
Usage Quantity for Item: A 1 B C 1
1 2 3 4 5 6 7 8 9 10
Gross Requirements 100 175 200 100 100 200 200 200 100
Scheduled Receipts 100
Projected On-Hand Inventory 350 250 175 0 0 0 0 0 0 0 0
Planned Receipts 25 100 100 200 200 200 100
Planned Order Releases 25 100 100 200 200 200 100
Item E Descr: Period (P) for POQ Lot Size (FOQ) 300
Lead Time 2
Safety Stock
Usage Quantity for Item: A 1 B C D 1
1 2 3 4 5 6 7 8 9 10
Gross Requirements 125 200 100 200 200 200 300 200 100 100
Scheduled Receipts 300
Projected On-Hand Inventory 100 -25 75 275 75 175 275 275 75 275 175
Planned Receipts 300 300 300 300 300
L4L Rule
FOQ Rule
Resource Planning ⚫ CHAPTER 11
11–27
29. Material Requirements Plan for Product A
This solution was developed using the Material Requirements Planning module in
OM Solver.
Inputs
Solver – Material Requirements Planning
Master Production Schedule
1 2 3 4 5 6 7 8 9 10
Item A MPS Start Descr: 50 50 50 150 150
Item B MPS Start Descr:
Material Requirements Planning
Item C Descr: Period (P) for POQ 2 Lot Size (FOQ)
Lead Time 1
Safety Stock
Usage Quantity for Item: A 1 B
1 2 3 4 5 6 7 8 9 10
Gross Requirements 50 50 50 150 150
Scheduled Receipts
Projected On-Hand Inventory 100 50 0 0 0 0 0 0 0 0 0
Planned Receipts 50 150 150
Planned Order Releases 50 150 150
Enter data in yellow shaded areas.
POQ Rule
Use second finished item
Item D Descr: Period (P) for POQ Lot Size (FOQ)
Lead Time 1
Safety Stock
Usage Quantity for Item: A 1 B C
1 2 3 4 5 6 7 8 9 10
Gross Requirements 50 50 50 150 150
Scheduled Receipts 100
Projected On-Hand Inventory -50 0 0 0 0 0 0 0 0 0
Planned Receipts 50 150 150
Planned Order Releases 50 150 150
Item E Descr: Period (P) for POQ Lot Size (FOQ) 300
Lead Time 2
Safety Stock
Usage Quantity for Item: A 1 B C D
1 2 3 4 5 6 7 8 9 10
Gross Requirements 50 50 50 150 150
Scheduled Receipts
Projected On-Hand Inventory 110 60 10 260 260 260 110 110 260 260 260
Planned Receipts 300 300
Planned Order Releases 300 300
L4L Rule
FOQ Rule
⚫ PART 2 ⚫ Managing Customer Demand
11–28
Item F Descr: Period (P) for POQ Lot Size (FOQ) 400
Lead Time 4
Safety Stock
Usage Quantity for Item: A B C 1 D 1 E 1
1 2 3 4 5 6 7 8 9 10
Gross Requirements 300 100 300 300 300
Scheduled Receipts 400
Projected On-Hand Inventory 40 140 40 40 40 140 240 340 340 340 340
Planned Receipts 400 400 400
FOQ Rule
In week 1, an order for 300 units of item E and an order for 400 units of item F should be
released.
Resource Planning for Service Providers
30. All Smiles Dental Clinic’s “Master Production Schedule” will look as follows. Note
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Forecasted
Patients
50
50
50
50
50
75
Booked
Patients
45
60
25
25
50
40
Hygienists
Scheduled
5
5
5
5
5
5
Temp
Hygienists
Required
1
3
Agency
Notified
1
3
Resource Planning ⚫ CHAPTER 11
11–29
31. The McDuff Credit Union
The number of applications at each level is shown in the table below.
Day of the Month
1
2
3
4
5
6
7
8
9
10
11
12
Final Approvals
5
5
7
8
2
2
4
6
2
1
6
3
Number of Applications at Level 1 (LT=1 day)
5
5
7
8
2
2
4
6
2
1
6
3
Number of Applications
at Level 2 (LT=3 days)
Advancing to Level 1
5
7
8
2
2
4
6
2
1
6
3
In Progress Second Day
7
8
2
2
4
6
2
1
6
3
In Progress First Day
8
2
2
4
6
2
1
6
3
Total
20
17
12
8
12
12
9
9
10
9
3
Number of Applications
at Level 3 (LT=2 days)
Advancing to Level 2
2
2
4
6
2
1
6
3
In Progress First Day
2
4
6
2
1
6
3
Total
4
6
10
8
3
7
9
3
Number of Applications
at Level 4 (LT=2 days)
Advancing to Level 2
4
6
2
1
6
3
In Progress First Day
6
2
1
6
3
Total
10
8
3
7
9
3
The daily human resource requirement to process applications is found below. For
Day of the Month
1
2
3
4
5
6
7
8
9
10
11
12
Accounting Clerk
hours required
24.0
24.5
30.0
28.0
13.0
17.0
21.5
19.5
9.0
6.5
13.5
6.0
Financial Analyst
hours required
40.8
34.7
23.0
20.6
27.6
22.4
15.3
14.1
15.0
13.5
4.5
0.0
Branch Manager
hours required
10.0
8.0
3.0
7.0
9.0
3.0
0.0
0.0
0.0
0.0
0.0
0.0
⚫ PART 2 ⚫ Managing Customer Demand
11–30
32. The comprehensive regional hospital
a. The number of bypass patients at each level is shown in the table below.
Day of the Month
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Projected Bypass Patient Departures
2
3
2
2
2
3
0
3
2
3
4
3
2
0
3
Number of Patients at Level 1 (LT=1 day)
2
3
2
2
2
3
0
3
2
3
4
3
2
0
3
Number of Patients at Level 2 (LT=1 day)
3
2
2
2
3
0
3
2
3
4
3
2
0
3
Number of Patients at Level 3 (LT=1 day)
2
2
2
3
0
3
2
3
4
3
2
0
3
Number of Patients at
Level 4 (LT=2 days)
Advancing to Level 3
2
2
3
0
3
2
3
4
3
2
0
3
In Progress First Day
2
3
0
3
2
3
4
3
2
0
3
Total
4
5
3
3
5
5
7
7
5
2
3
3
Number of Patients at Level 5 (LT=1 day)
3
0
3
2
3
4
3
2
0
3
Number of Patients at
Level 6 (LT=2 days)
Advancing to Level 5
0
3
2
3
4
3
2
0
3
In Progress First Day
3
2
3
4
3
2
0
3
Total
3
5
5
7
7
5
2
3
3
Number of Patients at Level 7 (LT=1 day)
2
3
4
3
2
0
3
The daily resource requirements to treat bypass patients are found below.
Day of the
Month
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Nursing Hours
Required
174 143 186 195 218 232 199 192 134 122 58 40 24 6 0
Beds Required 15 14 15 17 18 17 17 17 15 12 8 5 3 3 0
Lab Tests
Required
35 44 39 48 51 50 43 48 40 17 16 12 6 0 0
Bypass
Patients
b. The daily resource requirements to treat both bypass and aneurysm patients are
calculated in the table below.
Resource Planning ⚫ CHAPTER 11
11–31
Day of the
Month
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Nursing Hours
Required
174 143 186 195 218 232 199 192 134 122 58 40 24 6 0
Beds Required 15 14 15 17 18 17 17 17 15 12 8 5 3 3 0
Lab Tests
Required
35 44 39 48 51 50 43 48 40 17 16 12 6 0 0
Nursing hours
required
179 198 170 170 160 170 190 184 150 132 108 76 44 12 0
Beds required 12 12 11 11 10 12 13 11 10 8 6 4 2 0 0
Lab Tests
required
50 45 46 44 40 50 54 48 48 36 24 16 8 0 0
Nursing hours
required
353 341 356 365 378 402 389 376 284 254 166 116 68 18 0
Beds required 27 26 26 28 28 29 30 28 25 20 14 9 5 3 0
Lab Tests
required
85 89 85 92 91 100 97 96 88 53 40 28 14 0 0
Bypass
Patients
Aneurysm
patients
All patients
⚫ PART 2 ⚫ Managing Customer Demand
11–32
CASE: FLASHY FLASHERS, INC. *
A. Synopsis
Flashy Flashers, Inc. is a company that produces a line of automotive electrical
components and serves about 95 auto parts suppliers and car dealers regionally.
Recently, the company installed an MRP system. After one year’s use, Kathryn
Marley, the Vice President of Operations and Supply Chain Management, is looking
for ways to improve the resource planning process.
B. Purpose
This case provides the data to develop the MRP records for two products of Flashy
Flashers, Inc. In addition to reinforcing the skills of developing dependent demand
production plans, the case affords the opportunity to discuss possible implementation
problems when using MRP. The case also brings out the value of action notices,
capacity requirements planning, and the link between MRP and the MPS.
C. Analysis
A summary of the planned order release schedule is contained in Exhibit TN.1. The
MRP records for each of the component items are contained in Exhibit TN.2. Exhibit
TN.3 lists situations that the planner needs to act on this week in releasing new orders
or adjusting scheduled receipt due dates.
D. Recommendations
Recommendations to management include the following:
1. Manage the MPS process more effectively:
• The feast-or-famine capacity situation on the shop floor might be created in
part at the MPS level by not checking that resources are available before the
MPS is authorized.
the material requirements plan.
2. Create a more formal system for generating action notices, so that planners can
concentrate on the things that need their attention. It can be a simple list, such as
given in TN.3. These actions should not be automatically done by the MRP
* The original version of this case was prepared by Dr. Soumen Ghosh, Georgia Institute of Technology, as
a basis for classroom discussion.
Resource Planning ⚫ CHAPTER 11
11–33
3. Consider a priority planning system that updates priorities, based on valid due
dates of scheduled receipts. This step will require updating scheduled receipt dues
dates as needs change.
process, including lot sizing rules and how to respond to action notices.
5. While taking steps to level capacity requirements, the “overrides” by the shop
supervisor should be minimized and coordinated with the planners. His informal
6. Train all employees who provide information to the MRP system in addition to
E. Teaching Suggestions
Initially the instructor should get agreement on the planned order release form
(Exhibit TN.1). Be sure to rationalize any differences in the student forms because
they will spur the discussion of the mechanics of producing MRP reports. The results
lay the foundation for the conclusion that something definitely is wrong. Also,
compare notes on Exhibit TM.3. Although the mechanics of identifying action notices
are not emphasized in the textbook, discussing them can enhance student insights on
MRP capabilites.
After the mechanics are understood, the instructor should raise the question,
“What can be done to improve this resource planning process?” The six points
described in Section D are a starting point. Students may also point to other
possibilities, including:
❑ Accepting orders on short notice, even if on-time delivery is unlikely
❑ Poor estimates for lead times
❑ Bad priority planning system
❑ Lack of capacity
❑ Bad input data
❑ Ineffective follow-up with suppliers
❑ Blaming everyone else
⚫ PART 2 ⚫ Managing Customer Demand
11–34
EXHIBIT TN.1
Completed Planned Order Release Form
Week
Item Description
and Part Number
1
2
3
4
5
6
Side Lens
(SL111P)
350
Side Lens Rubber Gasket
(SL113P)
100
100
100
Side Frame Subassembly
(SL112A)
80
110
Side Frame
(SL121F)
110
Side Bulb Subassembly
(SL122A)
110
Flasher Bulb Subassembly
(SL123A)
200
Side Cable Grommet and Receptacle
(SL131F)
Flasher Cable Grommet and Receptacle
(SL133F)
Side Bulb
(SL132P)
Flasher Bulb
(SL134P)
100
Head Frame
Subassembly (HL211A)
120
90
75
Head Lens
(HL212P)
350
Head Lamp Module
(HL222P)
Head Frame
(HL223F)
165
Back Rubber Gasket
(C310P)
180
180
Screws
(C206P)
2500
Resource Planning ⚫ CHAPTER 11
11–35
EXHIBIT TN.2
Completed MRP Records
Item: SL111P
Lot Size: 350 units
Description: Side Lens
Lead Time: 2 weeks
Safety Stock: 0 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
140
80
145
Scheduled receipts
Projected on hand: 15
15
15
225
225
145
0
0
0
0
0
0
0
Planned receipts
350
Planned order releases
350
Item: SL112A
Lot Size: L4L
Description: Side Frame Subassembly
Lead Time: 3 weeks
Safety Stock: 0 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
100
80
110
Scheduled receipts
80
Projected on hand: 20
20
100
0
0
0
0
0
0
0
0
0
0
Planned receipts
80
110
Planned order releases
80
110
Item: SL113P
Lot Size: 100 units
Description: Side Lens Rubber Gasket
Lead Time: 1 week
Safety Stock: 20 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
100
80
110
Scheduled receipts
Projected on hand: 20
20
20
20
20
40
30
30
30
30
30
30
30
Planned receipts
100
100
100
Planned order releases
100
100
100
Item: SL121F
Lot Size: L4L
Description: Side Frame
Lead Time: 2 weeks
Safety Stock: 0 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
80
110
Scheduled receipts
80
Projected on hand: 0
0
0
0
0
0
0
0
0
0
0
0
0
Planned receipts
110
Planned order releases
110
Item: SL122A
Lot Size: L4L
Description: Side Bulb Subassembly
Lead Time: 2 weeks
Safety Stock: 0 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
80
110
Scheduled receipts
80
Projected on hand: 0
0
0
0
0
0
0
0
0
0
0
0
0
Planned receipts
110
Planned order releases
110
⚫ PART 2 ⚫ Managing Customer Demand
11–36
EXHIBIT TN.2 Cont)
Completed MRP Records
Item: SL123A
Lot Size: 200 units
Description: Flasher Bulb Subassembly
Lead Time: 2 weeks
Safety Stock: 0 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
80
110
Scheduled receipts
Projected on hand: 0
0
−80
10
10
10
10
10
10
10
10
10
10
Planned receipts
200
Planned order releases
200
Item: SL131F
Lot Size: POQ (P = 2)
Description: Side Cable Grommet & Receptacle
Lead Time: 2 weeks
Safety Stock: 0 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
110
Scheduled receipts
110
Projected on hand: 0
0
0
0
0
0
0
0
0
0
0
0
0
Planned receipts
Planned order releases
Item: SL132P
Lot Size: 100 units
Description: Side Bulb
Lead Time: 1 week
Safety Stock: 25 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
110
Scheduled receipts
100
Projected on hand: 35
25
25
25
25
25
25
25
25
25
25
25
25
Planned receipts
Planned order releases
Item: SL133F
Lot Size: 250 units
Description: Flasher Cable Grommet & Receptacle
Lead Time: 2 weeks
Safety Stock: 0 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
200
Scheduled receipts
Projected on hand: 240
40
40
40
40
40
40
40
40
40
40
40
40
Planned receipts
Planned order releases
Resource Planning ⚫ CHAPTER 11
11–37
EXHIBIT TN.2 Cont)
Completed MRP Records
Item: SL134P
Lot Size: 100 units
Description: Flasher Bulb
Lead Time: 1 week
Safety Stock: 25 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
200
Scheduled receipts
Projected on hand: 100
−100
0
0
0
0
0
0
0
0
0
0
0
Planned receipts
100
Planned order releases
100
Item: HL211A
Lot Size: L4L
Description: Head Frame Subassembly
Lead Time: 3 weeks
Safety Stock: 0 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
120
90
75
Scheduled receipts
Projected on hand: 0
0
0
0
0
0
0
0
0
0
0
0
0
Planned receipts
120
90
75
Planned order releases
120
90
75
Item: HL212P
Lot Size: 350 units
Description: Head Lens
Lead Time: 2 weeks
Safety Stock: 15 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
120
90
75
Scheduled receipts
Projected on hand: 15
15
15
15
245
155
80
80
80
80
80
80
80
Planned receipts
350
Planned order releases
350
Item: HL222P
Lot Size: POQ (P = 4)
Description: Head Lamp Module
Lead Time: 3 weeks
Safety Stock: 10 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
120
90
75
Scheduled receipts
285
Projected on hand: 10
175
85
10
10
10
10
10
10
10
10
10
10
Planned receipts
Planned order releases
⚫ PART 2 ⚫ Managing Customer Demand
11–38
EXHIBIT TN.2 (Cont.)
Completed MRP Records
Item: HL223F
Lot Size: POQ (P = 4)
Description: Head Frame
Lead Time: 1 week
Safety Stock: 0 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
120
90
75
Scheduled receipts
120
Projected on hand: 0
0
75
0
0
0
0
0
0
0
0
0
0
Planned receipts
165
Planned order releases
165
Item: C310P
Lot Size: 180 units
Description: Back Rubber Gasket
Lead Time: 1 week
Safety Stock: 20 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
120
170
185
Scheduled receipts
180
Projected on hand: 40
100
110
105
105
105
105
105
105
105
105
105
105
Planned receipts
180
180
Planned order releases
180
180
Item: C206P
Lot Size: 2500 units
Description: Screws
Lead Time: 1 week
Safety Stock: 30 units
Date
1
2
3
4
5
6
7
8
9
10
11
12
Gross requirements
240
180
350
480
520
520
Scheduled receipts
Projected on hand: 270
30
2350
2000
1520
1000
480
480
480
480
480
480
480
Planned receipts
2500
Planned order releases
2500
Resource Planning ⚫ CHAPTER 11
11–39
EXHIBIT TN.3
Actions for Planners to Consider This Week
Release New Orders
The following planned order releases are “mature for release,” because they are in the action bucket
(period 1). We assume that there is a new explosion each week, so planned order releases in period
2 and later need no action. The planner needs to review for component and capacity availability for
each mature POR before inputting an inventory transaction. That transaction issues a scheduled
receipt to the shop or supplier with the desired quantity and due date..
Side Lens (SL111P)
350 units (due date = week 3 )
Side Frame (SL121F)
110 units (due date = week 3)
Side Bulb Subassembly (SL122A)
110 units (due date = week 3)
Flasher Bulb Subassembly (SL123A)1
200 units (due date = week 2)
Flasher Bulb (SL134P)2
100 units (due date = week 1)
Head Frame Subassembly (HL211A)
120 units (due date = week 4)
Head Frame (HL223F)
165 units (due date = week 2)
Back Rubber Gasket (C3 I 0P)
180 units (due date = week 2)
Screws (C206P)
2,500 units (due date = week 2)
Realign Due Dates of Scheduled Receipts
The following scheduled receipt is no longer valid. The planner needs to asses the feasibility of
expediting or delaying schedule receipts that have become misaligned. If changes are not possible,
the plans for their parents must be adjusted as needed. If changes are not possible all the way up the
BOM to the MPS, then a call to the customer is needed. Knowing a shipment will be late is better
than reacting to it later on.
Side Bulb Subassembly (SL112A)
Postpone schedule receipt’s due date from
week 2 to week 3. Otherwise this job may be
occupying a bottleneck workstation at the
expense of an order that really does need to be
done in week 2.
1 Upon further investigation, Marley found that the quantity called for in a SL123A scheduled
2 SL134P must be ordered as a rush job from the supplier, because of the unanticipated