MRP Worksheet Example: Product K with Lot-for-Lot (L4L) Approach

MPS Data

Product: K, Lead time: 1 week, On-hand inventory: 0 Week number 1 2 3 4 5 6 7 8 Required date 100 200 100 Order release date 100 200 100

Item: A

Lot size: L4L units

Minimum order quantity: 250 units Lead time: 1 week Immediate Parent(s): K Safety stock: 50 units Week number 1 2 3 4 5 6 7 8 Gross Requirements 200 400 200 Scheduled Receipts 100 250 100 Projected on hand 100 -50 -300 -500 Net Requirements 100 150 100 Planned order receipts 100 150 100 Planned order releases 100 150 100

Item: B

Lot size: 300 units

Minimum order quantity: 600 units Lead time: 1 week Immediate Parent(s): K Safety stock: 0 units Week number 1 2 3 4 5 6 7 8 Gross Requirements 500 1000 500 Scheduled Receipts 120 300 120 Projected on hand 120 -80 220 720 Net Requirements 380 700 380 Planned order receipts 400 700 400 Planned order releases 400 700 400

Item: C

Lot size: L4L units

Minimum order quantity: 800 units Lead time: 1 week Immediate Parent(s): B Safety stock: 50 units Week number 1 2 3 4 5 6 7 8 Gross Requirements 1500 1500 Scheduled Receipts Projected on hand 50 -750 -1550 Net Requirements 1500 1500 Planned order receipts 1500 1500 Planned order releases 1500 1500

Item: D

Lot size: 400 units

Minimum order quantity: 400 units Lead time: 1 week Immediate Parent(s): B Safety stock: 0 units Week number 1 2 3 4 5 6 7 8 Gross Requirements 800 800 Scheduled Receipts Projected on hand -100 -500 -900 Net Requirements 800 800 Planned order receipts 800 800 Planned order releases 800 800