To simplify data handling to include the receipt of orders that have actually been placed in previous periods, the following six-level scheme can be used. (A number of different techniques are used in practice, but the important issue is to keep track of what is on hand, what is expected to arrive, what is needed, and what size orders should be placed.) 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 times of two weeks. Assume that lot-for-lot (L4L) lot sizing is used for Items A, B, and F; lots of size 59, 59, and 209 are used for Items C, D, and E, respectively. Items C, E, and F have on-hand (beginning) inventories of 19, 59, and 159, respectively; all other items have zero beginning inventory. We are scheduled to receive 19 units of A in Week 2, 59 units of E in Week 1, and also 59 units of F in Week 1. There are no other scheduled receipts. If 39 units of A are required in Week 8, use the low-level-coded bill of materials to find the necessary planned order releases for all components. Required: Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates

10 IO o o o Projected available Q=L4L Net reo Period Gross requirements Scheduled receipts Item A Projected available LT = 2 balance Q=L4L Net requirements Planned order receipts Dod Planned order releases Gross requirements Scheduled receipts Item B LT = 1 balance requirements Planned order receipts Planned order releases Gross requirements Scheduled receipts Item C Projected available LT = 1 balance Q = 59 Net requirements order receipts Ded Planned order releases ann Gross requirements Scheduled receipts Item D Projected available LT = 2 balance Q = 59 Net requirements Planned order receipts Planned order releases Gross requirements Scheduled receipts Item E Proiected available O Planned in Inl II Gross requirements Scheduled receipts Item C Projected available LT=1 balance Q = 59 Net requirements Planned order receipts Planned order releases Gross requirements Scheduled receipts Item D Projected available LT = 2 balance Q = 59 Net requirements Planned order receipts Planned order releases Gross requirements Scheduled receipts Item E Projected available LT = 1 balance Q = 209 Net requirements Planned order receipts Planned order releases Gross requirements Scheduled receipts Item F Projected available LT = 1 balance Q = L4L Net requirements Planned order receipts Planned order releases I 1000 O O I In