In an MRP problem, A is an MPS item. Every A requires 2 B's and 3 C's. Every B requires 5 C's. All lead times are two periods. All initial inventory values are 0. Use lot-4-lot method for order quantities for all items. If gross requirement for A is 500 in period 8, what will be the planned order release for B in period 4?
A) 0
B) 1,000
C) 500
D) 1,500
E) 6500

Question

Quizplus · Accepted Answer

Since all items use lot-4-lot method, the order quantity for B would be the same as the gross requirement for A divided by 2 (because every A requires 2 B's). Therefore, the gross requirement for B would be 500/2 = 250 in period 6 (2 periods before the gross requirement for A). However, since the lead time for B is also 2 periods, the planned order release for B would be in period 4 (2 periods before period 6). Therefore, the planned order release for B in period 4 would be 250, which is option B.

In an MRP Problem, a Is an MPS Item