91Ó°ÊÓ

Material requirements planning(MRP)is a method that assists producers in scheduling, budgeting, and managing their inventories during production. It is a software-based platform.

Demand for X = 130

Inventory = 25

Net requirement,

X = demand - inventory

= 105

Every bracket assembly requires (4 of A), (2 of B), and (3 of C).

Demand for A = 4 x 105

= 420

Inventory = 16

Net requirement = 420 – 16

= 404

Demand for B = 2 x 105

= 210

Inventory for B = 60

B Net requirement = 210 – 60

=150

Same for (3 of D) and (1 of E)

Demand for D = 3 x Net requirement of B

= 3 x 250

= 750

Inventory for D = 180

D, net requirement = 750 – 180

= 570

Demand for E = 1 x Net requirement of B

= 1 x 250

= 250

Inventory for E = 160

E, net requirement = 250 – 160

=90

Demand for C = 3 x 250

= 750

Inventory = 20

C, net requirement = 750 – 20

= 730

Rivet head screw, C requires (4 of F) and (2 of G)

Demand of F = 4 x 730

=2920

Inventory of F = 1000

F, net requirement = 2920 – 1000

= 1920

Demand of G = 2 x 730

=1460

Inventory = 100

G, net requirement = 1460 – 100

=1360