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Develop an MRP spreadsheet record for six periods using the following parameters for the item:
| Period | |||||||
| 1 | 2 | 3 | 4 | 5 | 6 | ||
| Gross Requirements | 30 | 40 | 40 | 30 | 30 | 30 | |
| Lead time (LT) | 1 | period | |||||
| Lot size (Q) | 50 | units | |||||
| Safety stock (SS) | 0 | units | |||||
| Inventory | 2 | units | |||||
| Scheduled receipt | 50 | units in period 1 | |||||
a. In what periods are there planned order releases?
b. What happens to the timing, number of planned order releases, and average inventory (for periods 1 through 6) if 20 units of safety stock are required?
c. What happens to the timing, number of planned order releases, and average inventory (for periods 1 through 6) if a one-week safety lead time is used instead of the safety stock?
Expert Answer
Answer
a) Period 1,2 & 4
| Net requirement = Gross requirement – On hand inventory |
| On hand inventory (j+1) = On hand inventory (i) + Scheduled receipt (j+1) |
| Order receipt >= Net requirement {Basis minimum order quantity} |
b) With Safety STock of 20 units:
c) Lead time = 2 weeks and Safety stock = 0
