Material Requirements Planning Exercise

Learning Objective: The purpose of this exercise is to demonstrate the materials requirement planning (MRP) functionality. As a first step, a small test problem with five materials in a BOM is solved manually to determine planned order releases by carrying out MRP calculations. The problem is solved in a traditional way with weekly time buckets.

Calculate Planned Order Releases for materials A-XXX (YOUR LEARN ###), B-XXX (YOUR LEARN ###), C-XXX (YOUR LEARN ###), D-XXX (YOUR LEARN ###), and E-XXX (YOUR LEARN ###). Relevant data on independent requirements (forecast), BOM, and material master data are given below.

The BOM for product A-XXX is shown below. One piece of D-XXX and two pieces of E-XXX are assembled to make one unit of C-XXX. Two pieces of C-XXX and one piece of D-XXX are needed to make one subassembly of B-XXX. Four units of B-XXX are further assembled to make one unit of the product A-XXX.

Independent requirements (demand) for product A-XXX (YOUR LEARN ###) are given below:

Period	Independent Requirements
Week 49/Current year	60
Week 50/Current year	40
Week 51/Current year	80
Week 52/Current year	100

Some Relevant Material Master Data

Material	Lot Size	Lead time	Procurement type	Remarks
A-XXX	LFL	5 days (1 Week)	In-house production	Finished Product
B-XXX	LFL	5 days (1 Week)	In-house production	Semi-finished Product
C-XXX	LFL	10 days (2 Week)	In-house production	Semi-finished Product
D-XXX	Fixed Lot of 300	5 days (1 Week)	External Procurement	Raw Material
E-XXX	Fixed Lot of 500	5 days (1 Week)	External Procurement	Raw Material

NOTE: Lot Size

EX (in SAP) Lot-for-lot (LFL) is a lot sizing technique, where orders produced are the exact amount needed. In a materials requirement planning (MRP) environment, lot size is equal to the net requirements for that period.

FX (in SAP) fixed lot size which is always uses the same quantity (or a multiple) for a reorder