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Operations Management: An Integrated Approach, 5th Edition by Nada R. Sanders, R. Dan Reid

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THE MRP EXPLOSION PROCESS

EXAMPLE 14.2 The MRP System at Storage Solutions by Elyssa, Inc.

Complete the MRP records for each of the items in the bill of material for the CD cabinet.

• Before You Begin: In this problem, determine the timing of planned orders for each item used in the construction of the CD cabinet. Using input from the master production schedule, determine the timing of the finished CD cabinet (shown in Table 14-6). Process the MRP records, level by level. Complete all of the level-one items before beginning the level-two items, and so on. The end result of this problem should be completed MRP records for every item used in the CD cabinet.

• Solution:

This example illustrates the MRP explosion process. Using Table 14-6, we begin the MRP explosion process. MRP calculates the materials needed to meet the authorized MPS. The gross requirements for end items arealways dictated by the authorized MPS. When we input these quantities into the proper time frame, MRP calculates the gross requirements for components. The MRP program begins by processing the inventory records of each component of the end item.

We will work through this example starting with the cabinet top. Table 14-8a shows the appropriate inventory record. Let's look at the differences in the inventory record. First, the lot size rule is a fixed-order quantity of 144 units, which means the order quantity is always 144 units. If an order of 144 units is not enough to cover the gross requirements, we can place ...

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