Net requirements are obtained by substracting on$-$hand inventory and scheduled receipts from gross requirements. Because the on$-$hand inventory of $186$ in period $3$ exceeds the gross requirement in period $4,$ the net requirements for period $4$ are $0.$ The remaining $60$ units $(186-126)$ are carried into period $5.$ In period $5,$ the scheduled receipt of $96$ is added to the starting inventory of $60$ to give $156$ units. The gross requirements for period $5$ are $126,$ so the net requirements for period $5$ are $0,$ and the additional $30$ units are carried over to period $6.$ Hence, the resulting net requirements for period $6$ are $96-30=66.$

The net requirements are phased back three periods $($because of the leadtime$)$ to obtain the time$-$phased net requirements and the production schedule $($because these valves are produced internally$).$ Note that the $96$ scheduled receipts correspond to the defective parts returned to the company and reworked.

Homework Exercise #$2$

Obtain the planned order release schedule for the Slide Assemblies using a lot$-$for$-$lot production rule

Homework Exercise #$3$

An end item has the product structure diagram given in the figure below. Suppose that the MPS for the end item is the following:

$\backslash$table$[[$Weeks$,30,31,32,34,35,36,37,38,39],[$MPS$,165,180,300,220,200,240,250,290,300]]$

Find the planned order release, assuming a lot$-$for$-$lot basis, for components F$,$ I, H$,$ C$.$