Model Answer
0 min readIntroduction
Material Requirements Planning (MRP) is a computer-based inventory management system designed to assist manufacturers in determining how many of each component—a raw material, part, or subassembly—is needed to support the production schedule. It’s a push system, meaning production is based on forecasted demand rather than actual orders. Effective MRP implementation ensures timely availability of materials, minimizes inventory costs, and improves production efficiency. This question assesses the ability to apply MRP principles to a basic assembly scenario, translating the Master Production Schedule (MPS) into detailed component requirements.
Understanding the Production System
The production system involves three products: A, B, and C. Product A is assembled from one unit of B and two units of C. The MPS for A is provided, and we need to determine the corresponding requirements for B and C. Since lead times are negligible, the requirements for B and C in any period will directly correspond to the production schedule of A in that period, adjusted by the Bill of Materials (BOM).
Bill of Materials (BOM)
The BOM defines the relationship between the finished product and its components. In this case:
- 1 unit of A requires 1 unit of B
- 1 unit of A requires 2 units of C
Calculating Requirements for Part B
Since one unit of A requires one unit of B, the requirement for B in each period is equal to the MPS for A in that period. We can represent this in a table:
| Period | MPS for A | Requirement for B |
|---|---|---|
| 1 | 10 | 10 |
| 2 | 15 | 15 |
| 3 | 10 | 10 |
| 4 | 5 | 5 |
| 5 | 10 | 10 |
Calculating Requirements for Part C
Since one unit of A requires two units of C, the requirement for C in each period is twice the MPS for A in that period. We can represent this in a table:
| Period | MPS for A | Requirement for C |
|---|---|---|
| 1 | 10 | 20 |
| 2 | 15 | 30 |
| 3 | 10 | 20 |
| 4 | 5 | 10 |
| 5 | 10 | 20 |
Considerations for Part C’s Operations
Part C requires two operations: machining and heat treatment. While the question states lead times are negligible, in a real-world scenario, the capacity of each operation would need to be considered. If the heat treatment operation has a limited capacity, it could become a bottleneck, impacting the ability to meet the demand for C and, consequently, A. Capacity Requirements Planning (CRP) would be necessary to assess this.
Inventory Management
This analysis assumes no existing inventory of B and C. In a practical setting, existing inventory levels would need to be factored into the calculations to determine the net requirements for each component. Safety stock levels would also be important to consider to buffer against unexpected demand fluctuations or supply disruptions.
Further Enhancements
A more sophisticated MRP system would incorporate features like lot sizing (e.g., Economic Order Quantity), safety stock calculations, and integration with supplier schedules. It would also allow for dynamic adjustments to the production plan based on changes in demand or supply conditions.
Conclusion
In conclusion, applying MRP principles to this simple production system allows us to accurately determine the requirements for components B and C based on the MPS for product A. The calculations demonstrate a direct relationship dictated by the BOM. While this example simplifies the process by assuming negligible lead times and no existing inventory, it illustrates the core functionality of MRP in translating a production schedule into detailed material requirements. A robust MRP system is crucial for efficient manufacturing and timely product delivery.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.