MPD412 - Ind Org - Lecture-05 - MRP-a
MPD412 - Ind Org - Lecture-05 - MRP-a
MPD412 - Ind Org - Lecture-05 - MRP-a
Lecture #5
Material Requirements Planning (MRP)
Example: BOM
MRP Inputs: Bill of Materials
Product structure tree: A visual depiction of the
requirements in a bill of materials, where all
components are listed by levels
Example: Product Structure Tree
MRP Inputs: Bill of Materials
Low-level coding
Restructuring the bill of material so that multiple occurrences
of a component all coincide with the lowest level at which the
component occurs.
Example: product structure tree diagram
An end item X is composed of two Bs and one C. moreover, each B
requires three Ds and one E, and each D requires four Es. Similarly,
each C is made up of two Es and two Fs. The items at each level are
components of the next level up and, as in a family tree, are parents of
their respective components. The available inventory on hand of each
items B, C, D, and E are 4, 10, 8, and 60 respectively. Note that the
quantities of each item in the product structure tree refer only to the
amounts needed to complete the assembly at the next higher level.
Use this information to do the following:
A. Draw the product tree diagram
B. Determine the quantities of B, C, D, E, and F needed to assemble
one unit of X
C. Determine the quantities of these components that will required to
assemble 10 Xs, taking into account the quantities on hand of
various components
Solution: tree diagram
X
a)
B(2) C
E(4) B: 2
b) C: 1
D: 2 ×3 = 6
E: 4 ×3 ×2 + 1 ×2 +2 ×1 = 28
F: 2
Solution: tree diagram
X
B: 2 ×10=20 - 4=16 C
B(2)
C: 1 ×10 =10 -10 = 0
D: 3 ×16 = 48 - 8 = 40
1 wk.
Frame Wheels (2) Frame (1)
2 wk. P/N 1003 P/N 1004
1 wk. Bicycle
3 wk.
Frame
Wheels Assy
1 2 3 4 5 6 7 8
Time (weeks)
Time-Phased Product Structure
Must have D and E
completed here so
Start production of D production can
begin on B Lead time
1 week
D (2)
2 weeks to A 1 weeks
produce
B 2 weeks
B (2)
2 weeks C 1 weeks
E (2)
A D 1 weeks
2 weeks 1 week E 2 weeks
2 weeks
E (2)
1 week
F 3 weeks
G (1) C (3) G 2 weeks
3 weeks
F (2)
1 week
D (2)
| | | | | | | |
1 2 3 4 5 6 7 8
Time in weeks
Introductory Example - Dependent Demand
Product Structure Tree for Assembly A Lead Times
A A 1 day
B 2 days
C 1 day
D 3 days
B(4) C(2) E 4 days
F 1 day
Demand
D(2) E(1) D(3) F(2)
Day 10 50 A
Day 8 20 B (Spares)
Day 6 15 D (Spares)
LT = 1 day
Day: 1 2 3 4 5 6 7 8 9 10
A R e q u ire d 50
O rd e r P la c e m e n t 50
B R e q u ire d 20 200
O rd e r P la c e m e n t 20 200
LT = 2
Spares
A
B(4) C(2)
A
Part D: Day 6
B(4) C(2) 40 + 15 spares
50
9-26 AL 4416 25 25
9-30 AL 4174 25 0
10-01 GR 6470 50 -50
10-08 SR 7542 200 150 Expedite SR 10-1
10-10 CO 4471 75 75
10-15 GR 6471 50 25
10-23 GR 6471 25 0
10-27 GR 6473 50 -50 Release PO 10-13
Key: AL = allocated CO = customer order
PO = purchase order WO = work order
SR = scheduled receipt GR = gross requirements
Example: MRP Action Report