Materials Requirements Planning

QUESTION

An MRP exercise is being implemented over an 8-week period and the following relevant information is provided:

One (1) unit of A is made of two (2) units of B and three (3) units of C. One (1) unit of B is made up of three (3) units of D and two (2) units of E. One(1) unit of C is made up of two (2) units of B and two (2) units of D. Items A, C and E have one (1) week lead time. Items B and D have lead times of two (2) weeks. Assume that lot-for-lot (L4L) lot sizing is used for Items A, C and E and a lot size of 100 is used for items B and D. Items A and D have beginning inventories of twenty (20) and forty ( 40) units respectively; all other items have zero beginning inventory. We are scheduled to receive ten (10) units of item B in week two (2) and twenty (20) units of item D in week one (1). There are no other scheduled receipts.

1. Draw the product structure tree with low level coding. [5 marks]
2. Draw the corresponding time-phased diagram showing lead times to scale. [5 marks]
3. If fifty (50) units of A are required in Week eight (8), determine the necessary planned order releases for all components {five(5) schedules} [15 marks]