ME3102D Management of Production Systems
MRP: Some solved problems
1. Assume that product Z is made of two units of A and four units of B. A is made of three units
of C and four units of D. D is made of two units of E. Lead time for the final assembly Z is
two weeks; A, B, C, and D take one week each; and E takes three weeks. The items B, C and
E are purchased items. Fifty units of the final assembly Z are required in period 10. Assume
that there is currently no inventory on hand for any of these items. Lot-for-lot lot sizing method
is used for all items. Develop the product structure tree. The end item is Z, and to produce this
item, 2 weeks required when first level items are available. A requirement in week 10 for this
item is 50 units. Prepare the MRP schedule.
Answer:
Product structure tree
A B
(2 required) (4 required)
C D
(3 required) (4 required)
E
(2 required)
b) MRP schedule
The MRP records for dependent items are as follows:
Item No: A Lead time: 1 week, 2 Quantity Lot-sizing procedure: Lot-for-lot
Period 1 2 3 4 5 6 7 8 9 10
Gross requirement 50 × 2
Scheduled receipts
Projected on hand
Planned order releases 100
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MRP: Some solved problems Oct 2024
Compiled by Dr. VMP, MED, NITC
ME3102D Management of Production Systems
Item No: B Lead time: 1 week, 4 Quantity Lot-sizing procedure: Lot-for-lot
Period 1 2 3 4 5 6 7 8 9 10
Gross requirement 50 × 4
Scheduled receipts
Projected on hand
Planned order releases 200
Item No: C Lead time: 1 week, 3 Quantity Lot-sizing procedure: Lot-for-lot
Period 1 2 3 4 5 6 7 8 9 10
Gross requirement 100 × 3
Scheduled receipts
Projected on hand
Planned order releases 300
Item No: D Lead time: 1 week, 4 Quantity Lot-sizing procedure: Lot-for-lot
Period 1 2 3 4 5 6 7 8 9 10
Gross requirement 100 × 4
Scheduled receipts
Projected on hand
Planned order releases 400
Item No: E Lead time: 3 weeks, 2 Quantity Lot-sizing procedure: Lot-for-lot
Period 1 2 3 4 5 6 7 8 9 10
Gross requirement 400 × 2
Scheduled receipts
Projected on hand
Planned order releases 800
2. One unit of A is made of three units of B, one unit of C, and two units of D. B is composed of
two units of E and one unit of D. C is made of one unit of B and two units of E. E is made of
one unit of F. Items B, C, E, and F have one week lead times. A and D have lead time of two
weeks.
Assume that lot-for-lot sizing is used for items A, B, and F. Lots of size 50, 50, and 200 are
used for items C, D, and E, respectively. Items C, E, and F have on hand (beginning)
inventories of 10, 50 and 150, respectively. All other items have zero beginning inventory. The
quantity of various items scheduled to receive is as follows: 50 units of E in week one, and 50
units of F in week one. There are no other scheduled receipts.
(a) Develop the product structure tree.
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MRP: Some solved problems Oct 2024
Compiled by Dr. VMP, MED, NITC
ME3102D Management of Production Systems
(b) If quantity of A required in week 8 is 20 units, determine the planned order releases for all
the items. Show the MRP record of all items.
Answer:
a) Product structure
B (3) C D (2)
E (2) D B E (2)
F E (2) D F
20 units of A is required in week 8 and the lead time for A is 2 weeks.
b) Since there is part commonality among levels of the product structure, before preparing the
MRP record of dependent items, the record processing sequence has to be decided using low-
level code.
Item B C D E F
Low-level code 2 1 3 3 4
Record processing order is C – B – D – E – F
Item No: C Lead time: 1 week Lot size: 50
Period 1 2 3 4 5 6 7 8
Gross requirement 20
Scheduled receipts
Projected on hand 10 10 10 10 10 10 40 40 40
Planned order releases 50
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MRP: Some solved problems Oct 2024
Compiled by Dr. VMP, MED, NITC
ME3102D Management of Production Systems
Item No: B Lead time: 1 week Lot-sizing procedure: Lot-for-lot
Period 1 2 3 4 5 6 7 8
Gross requirement 50 20×3
Scheduled receipts
Projected on hand
Planned order releases 50 60
Lead time: 2 weeks, 2 quantity
Item No: D Lot size: 50
for A
Period 1 2 3 4 5 6 7 8
Gross requirement 50 60 20×2
Scheduled receipts
Projected on hand 10 10 10
Planned order releases 50 60 50
Note: Since the week 5 net requirement is greater than lot size, the order size is taken as net
requirement.
Item No: E Lead time: 1 week, 2 quantity Lot size: 200
Period 1 2 3 4 5 6 7 8
60×2+
Gross requirement 50×2
50×2
Scheduled receipts 50
Projected on hand 50 100 100 100 0 0 0 0 0
Planned order releases 220
Note: Since the week 5 net requirement is greater than lot size, the order size is taken as net
requirement.
Item No: F Lead time: 1 week Lot-sizing procedure: Lot-for-lot
Period 1 2 3 4 5 6 7 8
Gross requirement 220
Scheduled receipts 50
Projected on hand 150 200 200 200 0 0 0 0 0
Planned order releases 20
3. Prepare the MRP records for the dependent items shown in the product structure given in
Figure 1. The manufacturing lead time of item A is one week. The MPS of A is given in Table
1. Current inventory status of items B, C and D, and other information required for MRP
computation are provided in Table 2. The MRP record must be prepared considering MPS of
A for the periods starting from period 2 to 6.
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MRP: Some solved problems Oct 2024
Compiled by Dr. VMP, MED, NITC
ME3102D Management of Production Systems
A Periods 1 2 3 4 5 6
Quantity 0 10 18 8 12 22
Table 1: MPS for A
C B (2 units required)
Item B C D
D
Lead-time 2 1 2
Fig. 1 Product Structure Lot size 40 20 25
Initial
20 20 30
Inventory
Scheduled 40 units each in 20 units in 25 units in
receipt periods 1 and 2 period 1 period 1
Table 2: Details Required for MRP Record Preparation
Answer
MPS of item A
Period 1 2 3 4 5 6
Quantity 0 10 18 8 12 22
It is assumed that MPS quantity is the quantity of A required to meet the demand in the specified
periods. The requirement for components of A then should be offsetted by one week.
Item No: B Lead time: 2 weeks Lot-size: 40
Period 1 2 3 4 5 6
Gross requirement 10×2 18×2 8×2 12×2 22×2
Scheduled receipts 40 40
Projected on hand 20 40 44 28 4 0 0
Planned order releases 40
Item No: C Lead time: 1 week Lot-size: 20
Period 1 2 3 4 5 6
Gross requirement 10 18 8 12 22
Scheduled receipts 20
Projected on hand 20 30 12 24 12 10 10
Planned order releases 20 20
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MRP: Some solved problems Oct 2024
Compiled by Dr. VMP, MED, NITC
ME3102D Management of Production Systems
Item No: D Lead time: 2 weeks Lot-size: 25
Period 1 2 3 4 5 6
Gross requirement 40
Scheduled receipts 25
Projected on hand 30 55 55 15 15 15 15
Planned order releases
**** End of document****
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MRP: Some solved problems Oct 2024
Compiled by Dr. VMP, MED, NITC
