One hundred twenty units of end item Z are needed at the beginning of week 7. Prepare a material requirements plan for component C. Take into account that on hand there are 40 units of Z, 70 units of A, 100 units of B, and 30 units of C. Also, there is a scheduled receipt of 20 units of component C in week 4. Lead times are two weeks for Z and B, and one week for the other components. Lot-for-lot ordering will be used for all items.

From the question; in regard with the material requirements plan MRP for the item Z; we have the following constructed table:

Item Z 1 2 3 4 5 6 7

Gross 120

Requirement

On-hand = 40

Schedule reciept

Balance 40 40 40 40 40 40 -

Net requirement 80

Planned Order

Receipt 80

Planned Order

Release 80

Following the material requirements plan (MPR) for A.

Item A 1 2 3 4 5 6 7

Gross 160

Requirement

On-hand = 70

Schedule reciept

Balance 70 70 70 70

Net requirement 80

Planned Order

Receipt 90

Planned Order

Release 90

Following the material requirements plan (MPR) for B.

Item B 1 2 3 4 5 6 7

Gross 320

Requirement

On-hand = 100

Schedule reciept

Balance 100 100 100 100

Net requirement 220

Planned Order

Receipt 220

Planned Order

Release 220

Following the material requirements plan (MPR) for component C; we have:

Item C 1 2 3 4 5 6 7

Gross 440 270

Requirement

On-hand = 30

Schedule reciept 20

Balance 50 50

Net requirement 390 270

Planned Order

Receipt 390 270

Planned Order

Release 390 270