Operations Management: MPS and MRP for Product K and its Components

This document outlines the Master Production Schedule (MPS) for Product K and the Material Requirements Planning (MRP) for its components A, B, C, and D. Product K is assembled according to the following Bill of Materials (BOM):

• 2 units of A are needed per K.
• 5 units of B are needed per K.
• 1 unit of B is needed per A.
• 3 units of C are needed per A.
• 2 units of D are needed per A.

The demand for Product K is as follows:

• 100 units needed in week 4.
• 200 units needed in week 5.
• 100 units needed in week 8.

Product K has a lead time of one week and no inventory on hand. A 'Lot for Lot' order policy is used for Product K.

The components A, B, C, and D have the following characteristics:

• Component A:
  • Lead time: 1 week
  • Inventory on hand: 100 units
  • Minimum order quantity: 250 units
  • Order policy: 'Lot for Lot'
  • Safety stock: 50 units
• Component B:
  • Lead time: 1 week
  • Inventory on hand: 120 units
  • Minimum order quantity: 600 units
  • Order policy: Lot size by 300 units
  • Safety stock: 0 units
• Component C:
  • Lead time: 1 week
  • Inventory on hand: 50 units
  • Minimum order quantity: 800 units
  • Order policy: 'Lot for Lot'
  • Safety stock: 50 units
• Component D:
  • Lead time: 1 week
  • Inventory on hand: 100 units
  • Minimum order quantity: 400 units
  • Order policy: Lot size by 400 units
  • Safety stock: 0 units

MPS Worksheet for Product K

| Required Date | Order Release Date | Week 1 | Week 2 | Week 3 | Week 4 | Week 5 | Week 6 | Week 7 | Week 8 | |---------------|--------------------|--------|--------|--------|--------|--------|--------|--------|--------| | Week 1 | Week 0 | | | | 100 | | | | | | Week 2 | Week 1 | | | | | | 100 | | | | Week 3 | Week 2 | | | | | | | | | | Week 4 | Week 3 | | | | | 200 | | | | | Week 5 | Week 4 | | | | | | | 100 | | | Week 6 | Week 5 | | | | | | | | | | Week 7 | Week 6 | | | | | | | | | | Week 8 | Week 7 | | | | | | | | 100 |

MRP Worksheet for Component A

| Week | Gross Requirements | Projected On Hand | Net Requirements | Planned Order Receipt | Planned Order Release | |------|--------------------|-------------------|------------------|-----------------------|-----------------------| | 1 | | 100 | | | | | 2 | | 350 | 200 | 250 | 250 | | 3 | 400 | 150 | 250 | 250 | 250 | | 4 | 200 | 400 | | 250 | 250 | | 5 | | 650 | 500 | 500 | 500 | | 6 | | 900 | 750 | 750 | 750 | | 7 | | 1150 | 1000 | 1000 | 1000 | | 8 | 100 | 1350 | | 1000 | 1000 |

MRP Worksheet for Component B

| Week | Gross Requirements | Projected On Hand | Net Requirements | Planned Order Receipt | Planned Order Release | |------|--------------------|-------------------|------------------|-----------------------|-----------------------| | 1 | | 120 | | | | | 2 | | 620 | 100 | 600 | 600 | | 3 | 1000 | 320 | 700 | 700 | 700 | | 4 | 1000 | 20 | 980 | 980 | 980 | | 5 | | 980 | 980 | 980 | 980 | | 6 | | 1280 | 1280 | 1280 | 1280 | | 7 | | 1580 | 1580 | 1580 | 1580 | | 8 | 300 | 1880 | | 1880 | 1880 |

MRP Worksheet for Component C

| Week | Gross Requirements | Projected On Hand | Net Requirements | Planned Order Receipt | Planned Order Release | |------|--------------------|-------------------|------------------|-----------------------|-----------------------| | 1 | | 50 | | | | | 2 | | 350 | 300 | 300 | 300 | | 3 | 600 | 50 | 550 | 550 | 550 | | 4 | | 600 | 550 | 550 | 550 | | 5 | | 1150 | 1050 | 1050 | 1050 | | 6 | | 1600 | 1550 | 1550 | 1550 | | 7 | | 2050 | 2000 | 2000 | 2000 | | 8 | 100 | 2500 | | 2000 | 2000 |

MRP Worksheet for Component D

| Week | Gross Requirements | Projected On Hand | Net Requirements | Planned Order Receipt | Planned Order Release | |------|--------------------|-------------------|------------------|-----------------------|-----------------------| | 1 | | 100 | | | | | 2 | | 500 | 400 | 400 | 400 | | 3 | 600 | 100 | 500 | 500 | 500 | | 4 | | 700 | | 400 | 400 | | 5 | | 1100 | 1000 | 1000 | 1000 | | 6 | | 1500 | 1400 | 1400 | 1400 | | 7 | | 1900 | 1800 | 1800 | 1800 | | 8 | 400 | 2300 | | 1800 | 1800 |