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    Development of MRP Schedule

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    Brown and Brown Electronics manufactures a line of digital videodisc (DVD) players. Although there are differences among the various products, there are a number of common parts within each player. The bill of materials, showing the number of each item required, lead times, and the current inventory on hand for the parts and components follows.

    DVD Model

    Item Number Currently in Stock Lead Time (Weeks) Lot Size Safety Stock Scheduled Receipt
    DVD Model A 30 1 L4L
    DVD Model B 50 2 L4L
    Subassembly C 75 1 Q = 1000 3000 Week 5
    Subassembly D 80 2 P = 2
    Subassembly E 100 1 L4L
    Part F 150 1 L4L 100
    Part G 40 1 Q = 200 40 2000 Week 4
    Raw Material H 200 2 Q = 300
    Raw Material I 300 2 P = 3 5000 Week 2
    Part of the MPS shows demands for Model A 700 units in week 6 and 500 units in week 8. And part of the MPS also shows demands for Model B 800 units in week 7 and 1,200 units in week 8. Please develop an MRP schedule to meet the demand. The practice blank sheet is attached.

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    Solution Preview

    Model A and Model B are 0 level part.
    Component C, D and E are 1 level part. So that, they be will started after 0 level parts.
    In the table Model A is starting from week 6 and model B is from week 7. So that part C, D and E will be started from week 5 for Model A and week 6 for Model B. and part F is 2 level parts. So that it will be started after 1 level component.

    Model A
    Gross Requirements 700 in weeks 6 and 500 in week 7
    Lot Size gross requirement - on hand inventory
    Current stock 30
    Low Level code 0
    Lead time 1 week
    Order one week before because lead time for Model A is 1 week. (See in table)

    Model B
    Gross Requirements 800 in weeks 7 and 1200 in week 8
    Lot ...

    Solution Summary

    The solution develops an MRP schedule for Brown and Brown Electronics manufacturers.