1. 1
MRP Calculation
Presented by:
Emdadul Huq,MBA, PGDSCM
Trained on SCM,InventoryManagement& CCA
SUBJECT: MANUFACTURING PLANNING & CONTROL

2. 2
Material Requirement Planning (MRP)
Q: Each unit of A is composed of one unit of B, two
units of C, and one unit of D. C is composed of two
units of D and three units of E. Items A, C, D, and E
have on-hand inventories of 20, 10, 20, and 10
units, respectively. Item B has a scheduled receipt of
10 units in period 1, and C has a scheduled receipt
of 50 units in Period 1. Lead times are one period
for Items A, B, and C, and two periods for Items D
and E. The gross requirements for A are 30 in
Period 2, 30 in Period 5, and 40 in Period 8. Find
the planned order releases for all items.

3. 3
MRPExercise
A Level-0
B1 C2 D1 Level-1
D2 E3 Level-2
ProductStructure Tree

4. 4
Bill of Materials (BOM)
Level-0
Item P-2 P-5 P-8 Total On Hand SR Requied
A 30 30 40 100 20 - 80
Level- 1
B 1 xNumber of As =80x1= 80 - 10 70
C 2 xNumber of As =80x2= 160 10 50 100
D 1 xNumber of As =80x1= 80 20 - 60
Level- 2 - 260
D 2 xNumber of Cs =100x2= 200 - - 200
E 3 xNumber of Cs =100x3= 300 10 - 290
P= Period in week

5. 5
MRP Calulation
1 Lead Time = 1 Lot for Lot
Item Name: A Period Level
Week Number PD 1 2 3 4 5 6 7 8 0
Gross Requirements - - 30 - - 30 - - 40
Scheduled Receipts - - - - - - - - -
Projected On Hand 20 20 20 - - - - - -
Net Requirements - - 10 - - 30 - - 40
Planned Order Receipts - - 10 - - 30 - - 40
Planned Order Releases - 10 - - 30 - - 40 - 80
2 Lead Time = 1 Level
Item Name: B Period Lot for Lot 1
Week Number PD 1 2 3 4 5 6 7 8
Gross Requirements - 10 - - 30 - - 40 -
Scheduled Receipts 10 10 - - - - - - -
Projected On Hand - - - - - - - - -
Net Requirements - - - - 30 - - 40 -
Planned Order Receipts - - - - 30 - - 40 -
Planned Order Releases - - - 30 - - 40 - - 70

6. 6
3 Lead Time = 1 Lot for Lot Level
Item Name: C Period 1
Week Number PD 1 2 3 4 5 6 7 8
Gross Requirements - 20 - - 60 - - 80 -
Scheduled Receipts 50 50 - - - - - - -
Projected On Hand 10 10 40 40 40 - - - -
Net Requirements - - - - 20 - - 80 -
Planned Order Receipts - - - - 20 - - 80 -
Planned Order Releases - - - 20 - - 80 - - 100
4 Lead Time = 2 Lot for Lot Level
Item Name: D Period 1 & 2
Week Number PD 1 2 3 4 5 6 7 8
Gross Requirements - 10 - 40 30 - 160 40 -
Scheduled Receipts - - - - - - - - -
Projected On Hand 20 20 10 10 - - - - -
Net Requirements - - - 30 30 - 160 40 -
Planned Order Receipts - - - 30 30 - 160 40 -
Planned Order Releases - 30 30 - 160 40 - - - 260

7. 7
5 Lead Time = 2 Lot for Lot Level
Item Name: E Period 2
Week Number PD 1 2 3 4 5 6 7 8
Gross Requirements - - - 60 - - 240 - -
Scheduled Receipts - - - - - - - - -
Projected On Hand 10 10 10 10 - - - - -
Net Requirements - - - 50 - - 240 - -
Planned Order Receipts - - - 50 - - 240 - -
Planned Order Releases - 50 - - 240 - - - - 290

8. 8
THANK YOU ALL