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Given the data provided for product structure, component AC101, and the planned orders of parent AB500 below, use the matrix for AC101 at the bottom to compute gross requirements, projected on hand, net requirements and planned orders. Suggestion: Start by filling out the MRP matrix for AC101 with the data given.

AB500

LT = 2

AC101

LT = 3

Notes: ( ) signifies usage. FOQ = Fixed order quantity.

Item	On Hand	Scheduled Receipts	Lot Size / Order Policy	MPS	Lead Time
AC101	1300	600: week 6	FOQ = 600	200, week 4;	3

Item:	AB500		LLC:		0	Period
Lot Size:	L4L		LT:		2	1	2	3	4	5	6	7	8	9	10
Gross Requirements								210	250	150	250	150	250	150	250
Scheduled Receipts
Projected on Hand				60
Net Requirements								150	250	150	250	150	250	150	250
Planned Orders (Releases)						150	250	150	250	150	250	150	250

Item:	AC101		LLC:		1	Period
Lot Size:	FOQ	600	LT:		3	1	2	3	4	5	6	7	8	9	10
Gross Requirements
Scheduled Receipts
Projected on Hand				1300
Net Requirements
Planned Orders (Releases)

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