Rocket Company Production Operations: Material Requirements Planning (MRP) & Master Production Schedule (MPS)

You are now the director of a rocket company, and your mission is to provide accurate results of the production operations. Please check carefully that your answers are correct because life depends on it. The following is a question from Operations management.

Product K is made according to the BOM graph: 2 A is needed per K, 5 B is needed per K, and 1 B is needed per A, 3 C is needed per A, 2 D is needed per A.

Now 100 product K are needed in week 4, 200 are needed in week 5, 100 needed in week 8. Product K has a lead time of one week and no inventory on hand. Lot for Lot order is used.

As for components A, B, C, D. All of them has a lead time of one week and the respective inventory are 100, 120, 50 and 100.

For A, minimum order is 250 units. It is Lot of Lot order and safety stock is 50 units.

For B, minimum order is 600 units. It is Lot size by 300 units and safety stock is 0 units.

For C, minimum order is 800 units. It is Lot for lot. and safety stock is 50 units.

For D, minimum order is 400 units. It is Lot size by 400 units . and safety stock is 0 units.

First, please generate an MPS worksheet for K from week 1 to week 8 with a vertical axis from week 1 to week 8. For the horizontal axis, there are required date and order release date.

Second, please generate an MRP worksheet for A, B, C, D in separate tables. Each table consists of 8 weeks in the horizontal axis from week 1 to week 8. For the vertical axis, there are Gross requirements, projected on hand, net requirements, planned order receipt and planned order release.

For you to check your answers, the order release date of K at week 3 is 100. And the Gross requirements of A in week 3 is 200, since their relationship is explained above.

MPS Worksheet for Product K:

| Week | Required Date | Order Release Date | Quantity | |------|--------------|--------------------|----------| | 1 | 4 | - | 0 | | 2 | - | 4 | 0 | | 3 | - | 11 | 100 | | 4 | 11 | - | 100 | | 5 | - | 18 | 200 | | 6 | - | 25 | 0 | | 7 | - | 32 | 0 | | 8 | 32 | - | 100 |

MRP Worksheet for Component A:

| Week | Gross Requirements | Projected On Hand | Net Requirements | Planned Order Receipt | Planned Order Release | |------|--------------------|-------------------|------------------|-----------------------|-----------------------| | 1 | 0 | 100 | 0 | 0 | 0 | | 2 | 0 | 100 | 0 | 0 | 0 | | 3 | 200 | 100 | 100 | 250 | 4 | | 4 | 0 | 350 | 0 | 0 | 0 | | 5 | 0 | 350 | 0 | 0 | 0 | | 6 | 0 | 350 | 0 | 0 | 0 | | 7 | 0 | 350 | 0 | 0 | 0 | | 8 | 100 | 350 | 0 | 0 | 0 |

MRP Worksheet for Component B:

| Week | Gross Requirements | Projected On Hand | Net Requirements | Planned Order Receipt | Planned Order Release | |------|--------------------|-------------------|------------------|-----------------------|-----------------------| | 1 | 0 | 120 | 0 | 0 | 0 | | 2 | 0 | 120 | 0 | 0 | 0 | | 3 | 500 | 120 | 380 | 900 | 4 | | 4 | 0 | 1020 | 0 | 0 | 0 | | 5 | 1000 | 1020 | 680 | 1200 | 18 | | 6 | 0 | 920 | 0 | 0 | 0 | | 7 | 0 | 920 | 0 | 0 | 0 | | 8 | 100 | 920 | 0 | 0 | 0 |

MRP Worksheet for Component C:

| Week | Gross Requirements | Projected On Hand | Net Requirements | Planned Order Receipt | Planned Order Release | |------|--------------------|-------------------|------------------|-----------------------|-----------------------| | 1 | 0 | 50 | 0 | 0 | 0 | | 2 | 0 | 50 | 0 | 0 | 0 | | 3 | 300 | 50 | 250 | 800 | 4 | | 4 | 600 | 850 | 550 | 800 | 11 | | 5 | 0 | 550 | 0 | 0 | 0 | | 6 | 0 | 550 | 0 | 0 | 0 | | 7 | 0 | 550 | 0 | 0 | 0 | | 8 | 150 | 550 | 100 | 800 | 25 |

MRP Worksheet for Component D:

| Week | Gross Requirements | Projected On Hand | Net Requirements | Planned Order Receipt | Planned Order Release | |------|--------------------|-------------------|------------------|-----------------------|-----------------------| | 1 | 0 | 100 | 0 | 0 | 0 | | 2 | 0 | 100 | 0 | 0 | 0 | | 3 | 200 | 100 | 100 | 400 | 4 | | 4 | 200 | 400 | 200 | 800 | 11 | | 5 | 0 | 800 | 0 | 0 | 0 | | 6 | 0 | 800 | 0 | 0 | 0 | | 7 | 0 | 800 | 0 | 0 | 0 | | 8 | 200 | 800 | 200 | 1200 | 25 |