Referring to Data Table 1 and Product Structure flow chart FIRST, determine the Low Level Code for each part number in Data table 1.

End item "P" is made from two "Q's", and three "R's." "R" is made from one "Q" and one "S". Refer to Product structure flow chart.

Data table 1

Under the Low Level Code column, enter in each green cell the Low Level Code for each part number using "0","1", "2", "3" etc :

Lead On Low Level Part # Time hand Code P 2 Weeks 40 Q 2 Weeks 80 R 2 Weeks 180 S 1 Weeks 20

Part 2. We currently have the following customer orders,(gross requirements) for "P"90 in week 3, 60 in week 5 and 60 in week 7.

SECOND, Determine the Planned order release for product "P" by completing MRP table 2.

MRP table 2

Fill in the blank cells in the table using the data provided to determine the Planned order release for product "P"

Item # P Weeks Lead time = 1 2 3 4 5 6 7 8 Gross Requirements On Hand Inventory = 40 40 40 Net Requirements Planned Order Receipt Planned Order Release