In an MRP problem, A is an MPS item. Every A requires 2 B’s and 3 C’s. Every B requires 5 C’s. All lead times are two periods. Initial inventory values for A is 100, B is 200 and C is 0. Use lot-4-lot method for order quantities for all items. If gross requirement for A is 800 in period 9, what will be the planned order release for B in period 5?
a.1600
b.1400
c.700
d.800
e.1200
Expert Answer
The MRP’s for item A and B are as follows
Item
A
Week
1
2
3
4
5
6
7
8
9
Lot Size
L4L
Gross Req.
800
Lead time
2
Scheduled Receipt
POH
100
Projected on hand Inv
100
100
100
100
100
100
100
100
0
SS
0
Net requirement
800-100
= 700
Planned order receipt
700
Planned order release
700
Each A
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