Material Requirements Planning

MATERIAL REQUIREMENTS PLANNING
1. The production planning head for V K Brackets has a BOM for a bracket that is made up
of a base, two springs and four clamps. The base is assembled from one clamp and two
housings. Each clamp has one handle and one casting. Each housing has two bearings
and one shaft. There is no inventory on hand.
a. Design a product structure noting the quantities for each item and show the low-level
coding.
b. Determine the gross quantities needed of each item if you are to make 50 brackets.
c. Compute the net quantities needed if there are 25 of the base and 100 of the clamp
available in stock.
2. For brackets mentioned in Problem 1, the planning head has just been provided with a
schedule and lead times for manufacturing. The unit is to be prepared in Week 10. The
lead times for the components are bracket (1 week), base (1 week), spring (1 week), clamp
(1 week), housing (2 weeks), handle (1 week), casting (3 weeks), bearing (1 week) and
shaft (1 week).
a. Prepare the time-phased product structure for the bracket.
b. In which week do we need to start the castings?
3. Electro Fans runs a make-to-order business. It has just received an order for one thousand
20-inch fans due end of week 7. Each fan consists of a housing assembly, two grills, a fan
assembly, and an electrical unit. The housing assembly consists of a frame, two supports,
and a handle. The fan assembly consists of a hub and five blades. The electrical unit
consists of a motor, a switch, and a knob. The following table gives lead times, on-hand
inventory and scheduled receipts.
Lead On-hand Scheduled

Component
Time inventory receipt
20” fan 1 100
Housing 1 100
Frame 2 -
Supports (2) 1 50
Handle 1 400
Grills (2) 2 200
Fan Assembly 3 150
Hub 1 -
Blades (5) 2 -
Electrical Unit 1 -
Motor 1 -
Switch 1 20
Knob 1 - 200 knobs in week 2
Since this is a make-to-order business and order sizes vary significantly, Electro Fans
follows a lot-for-lot order sizing policy.
a. Construct a basic product-structure.
1
b. Construct a time-phased product structure.
c. Prepare a MRP explosion showing the net material requirements plan and
planned order release for each item.
4. A particular O-ring is used in multiple finished products in a factory that makes motorcycle
components. Based on the demands for these finished products, the gross requirements
over a 12-week period for this O-ring have been computed to be as shown in the table
below.
Period (weeks) 1 2 3 4 5 6 7 8 9 10 11 12
Gross
15 20 10 25 30 20
Requirements
The lead time is 1 period, the setup cost is Rs. 2500 and the holding cost is Rs. 100 per
unit per week. Initial inventory is 0 and there are no scheduled receipts. What is the
ordering plan and costs for each of these inventory policies?
a) Lot-for-lot
b) EOQ
c) POQ (try out multiple time period options such as 2, 3, 4, 6 and 12).
Which policy has the lowest costs?
5. Consider a common stapler, the BOM for which is given in the figure below.
The MPS record calls for releasing PORs for 1000 staplers a week for the next three weeks,
500 staplers in the fourth and fifth week followed by a POR for 1500 staplers in the sixth
week. Do a detailed MRP explosion and prepare the MRP records that determine the
planned order releases for all items in the stapler’s BOM over the planning horizon. The
current time is the start of week 1. Relevant information pertaining to current on-hand
2
inventory, outstanding orders (scheduled receipts), along with when they are due to arrive,
and lead times to acquire (produce) for each item are given in Table 1.
All items follow a Lot-For-Lot (LFL) ordering policy, except the Pin (1135-42-50) and the
Slide Pin (1135-42-60-28) which are ordered in lot sizes of 1400 and 850 respectively.
There is no safety stock requirement.
Table 1: Status at beginning of Week 1
Due to
Item OH Scheduled Lead time
Level Item ID arrive
Description inventory receipts (weeks)
(week no)
0 1135-42 Stapler 4.2” 398 1
1 1135-42-10 Base Assembly 852 535 1 1
2 1135-42-10-81 Base Plate 750 1200 2 2
2 1135-42-10-93 Base Molding 780 980, 450 2, 3# 3
2 1135-42-10-84 Jaw Support 885 1
2 8142-09 Stake Rivet 3012 1
2 1296-11 Tension Plate 750 1
1 1135-42-20 Top Jaw 1080 1000 2 2
1 1135-42-30 Bottom Jaw 580 1200, 800, 650* 1, 2, 3* 3
1 1135-42-40 Top Assembly 1212 1

2 1135-42-40-11 Top Plate 700 550 1 1
2 1135-42-40-17 Top Cover 850 1
2 1135-42-40-19 Locator Plate 600 1200 1 2
1, 2 1135-42-50 Pin 366 1
1 1135-42-60 Spring 1150 80 1 1
Assembly
2 1135-42-60-18 Copper Spring 950 1
2 1135-42-60-28 Slide Pin 558 650 1 1
2 1135-42-60-33 Slide Housing 1213 1
#
980 and 450 units are due to arrive in weeks 2 and 3 respectively.
*1200, 800 and 600 units are due to arrive in weeks 1, 2 and 3 respectively.

Material Requirements Planning

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MATERIAL REQUIREMENTS PLANNING

Lead On-hand Scheduled

a. Construct a basic product-structure.

1 1135-42-30 Bottom Jaw 580 1200, 800, 650* 1, 2, 3* 3

1 1135-42-40 Top Assembly 1212 1

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