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1. Dear students get fully solved IMT assignments
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IMT- 89
MATERIAL REQUIREMENT PLANNING
Notes:
a. Write answers in your own words as far as possible and refrain from copying from the text
books/handouts.
b. Answers of Ist Set (Part-A), IInd Set (Part-B), IIIrd Set (Part – C) and Set-IVth (Case Study) must
be sent together.
c. Submit the assignments in IMT CDL H.O.along with the assignments Question Papers for
evaluation .
d. Only hand written assignments shall be accepted.
A. First Set of Assignments 5 Questions, each question carries 1.5 marks.
B. Second Set of Assignments 5 Questions, each question carries 1.5 marks.
C. Third Set of Assignments 5 Questions, each question carries 1.5 marks. Confine your answers to
150 to 200 Words.
D. Forth Set of Assignments Two Case Studies : 7.5 Marks. Each case study carries 3.75 mark
SECTION – A
1. What is the role of Inventory in a firm? What are the performance metrics of Inventory?
Answer:Inventoryisnotjustabout the itemsa retailersells.Inventorymanagementinvolves taking
stock of a business'assets,suchaslabor,cash and material itemsusedorsold.Inessence,inventory
control enables the business to have what it needs, when it needs it in order to do business.
Role of Inventory in a firm :
Inventory Control
The goal fora businessistoinvestthe leastamount in inventory while maintaining specific
operatingrequirements. Ideally,the inventorycontrol inplace allowsthe business to supply
needs in regards to production or to the customer at the precise moment needed, at the
minimal price. Successful inventory control keeps waste and surplus at a minimum and
efficiently handles storage, production and distribution of inventory.
Primary Function

2. The primary function
2. How is the independent and dependent demand related to the rationale behind the
development of MRP?
Answer : One way to understand inventory is to separate it into two broad categories: dependent
and independentdemand.Understandingthisdifference isimportant as the entire inventory policy
for an item is based on this. Independent demand is demand for a finished product, such as a
computer, a bicycle, or a pizza. Dependent demand, on the other hand, is demand for component
parts or subassemblies.Forexample, this would be the microchips in the computer, the wheels on
the bicycle, or the cheese on the pizza.
The two inventory systems we discussed are used to determine order quantities for independent
demand. But how do we compute quantities for dependent demand? Quantities for dependent
demand are derived from independent
3. A master production schedule is a vital component of planning and control in Manufacturing.
Discuss with examples.
Answer : A master production schedule (MPS) is a plan for individual commodities to produce in
each time periodsuchasproduction, staffing, inventory, etc.mIt is usually linked to manufacturing
where the plan indicates when and how much of each product will be demanded. This plan
quantifies significant processes, parts, and other resources in order to optimize production, to
identify bottlenecks, and to anticipate needs and completed goods. Since an MPS drives much
factoryactivity,its accuracy and viability dramatically affect profitability. Typical MPS's are created
by software with user tweaking.
Due to software limitations, but especially the
4. What are the main assumptions to be kept in mind while Setting up a MRP system in an
organisation? Discuss with examples.
Answer : Set-up costs are the costs incurred from getting a machine ready to produce the desired
good. In a manufacturing setting this would require the use of a skilled technician (a cost) who
disassembles the tooling that is currently in use on the machine. The disassembled tooling is then
takento a tool room or tool shop for maintenance or possible repair (another cost). The technician
thentakesthe currentlyneededtoolingfromthe tool room(where ithasbeen maintained; another
cost) and brings it to the machine in question.
There the technician has to assemble the tooling on the machine in the manner required for the
good to be produced (this is known as a "set-up").

3. 5. Level by Level computation of requirement by MRP reduces the likelihood of problems in
handling multiple parent demands. How are common items treated by MRP?
Answer:SupplyChain Planning users can employ additional functionality to generate and manage
theirmaterial anddistributionrequirementsacrossmultiple,interdependentorganizations.See:The
Multiple Organization Model and Material and Distribution Requirements Planning.
Material requirements planning (MRP) calculates net requirements from gross requirements by
evaluating:
SECTION – B
1.What are the different methods of LOT Sizing? Explain with examples.
Answer : Minimum lot size
Whenthe minimumlotsize is80 and the requiredquantityis100,the systemcreatesarequirement
proposal for a quantity of 100 Units, to cover the shortages.
This can be used with almost all the lot sizing procedures.
Maximum lot size
If the requiredquantitythroughademandis120 kg, thenthe systemwill create twoplannedorders
of 80 kg & 40 kg {if the Plant/Storage location stock for that material is Zero}
If the procurement qty is 140 kg, and the
2. The net requirements for a material from an MRP schedule are:
It costs $400 to change over the machines for this material in the affected work centre. It costs
$0.40 per unit when one unit of this material must be carried in inventory from one week to the
next.
• Identify the lot-sizing method that results in the least carrying and changeover costs for the 8-
week schedule.
Answer : Lot-for-Lot Method

4. Carrying
3. What are the major roles of Bill Of Material? Explain the concept of transient assemblies.
Answer : A bill of materials (BoM) is a list of the parts or components that are required to build a
product. The BoM provides the manufacturer's part number (MPN) and the quantity needed for
each component.
At its most complex, a BoM is a multi-level document that provides build data for multiple sub-
assemblies (products within products) and includes for each item: part number, approved
manufacturerslist(AML),mechanical characteristicsandawhole range of componentdescriptors. It
may also include attached reference files, such as part specifications, CAD files and schematics.
4. Explain the five major inputs that are used by MRP to determine correct inventory and order
status of each item. Give Examples.
Answer : Material requirements planning (MRP) is a computer-based inventory management
system designed to assist production managers in scheduling and placing orders for items of
dependent demand. Dependent demand items are components of finished goods—such as raw
materials, component parts, and subassemblies—for which the amount of inventory needed
dependsonthe level of production of the final product. For example, in a plant that manufactured
bicycles,dependentdemandinventoryitemsmightinclude aluminum, tires, seats, and bike chains.
5. A realistic MPS is a plan that is subject to continuous review and adjustment. Do you agree?
Support your answer with appropriate examples.
Answer : Master Production Schedule (MPS) :
MPS operateswithinonlyone levelof the BOM,While MRP can be utilized throughout all levels of
a material’s BOM. If a MPS is run on a material, the necessary orders are planned at that level.
Dependent requirements (if any) are placed on the next BOM level down, and then the process
stops.
Main Idea: Master production scheduling(MPS) isaform of MRP that concentrates planningonthe
parts or products that have the great influence on company profits or which dominate the entire
production process by taking critical resources.
SECTION - C

5. Q1.What are the problems that need to be monitored to ensure the healthy functioning of MRP
programs? How are these problems monitored?
Answer : First problem with MRP systems - the integrity of the data. If there are any errors in the
inventorydata,the bill of materials(commonlyreferredto as 'BOM') data, or the master production
schedule, then the output data will also be incorrect ("GIGO": Garbage In, Garbage Out). Data
integrity is also affected by inaccurate cycle count adjustments, mistakes in receiving input and
shipping output, scrap not reported, waste, damage, box count errors, supplier container count
errors, production reporting errors, and system issues. Many of these type of errors can be
minimized by implementing pull systems and
Q3.What is planning execution loop in MRP? How do we close the execution loop?
Answer:Closedloopmanufacturingresource planning,alsoknownasclosedloopMRP(CLMRP), is a
manufacturing resource planning model that incorporates returned products as part of the supply
chain. In such a model, the original equipment manufacturer (OEM) takes responsibility for the
returnloop(RL) process.Productreturns(alsoknown as cores) often come directly from customers
or retail channels,buttheycanalsocome fromproductionfacilitiesin the formof manufacturingby-
products or components that fail to meet the manufacturer's quality control criteria. Returned
productsare countedas inventorybecausetheycanbe inspectedandresold,refurbishedorusedfor
parts. Byclosingthe loopand managingthe productlifecycle inaholistic manner, the manufacturer
has more control over both supply chain and
Q4.How MRP can be used in JIT environments?
Answer:MRP and JITeach have benefits. The questionis:Cantheyworktogether successfully, and
how would one go about combining them? As stated earlier in the chapter, most major
manufacturing firms use MRP. Of the firms using MRP, many in repetitive manufacturing are also
implementingJITtechniques. AlthoughJITisbestsuited torepetitive manufacturing,MRP is used in
everything from custom job shops to assembly-line production. Most firms that have successfully
implementedMRPsystemsare notinterestedindiscardingMRPto try JIT. A new challenge arises in
integratingthe shop-floorimprovement approaches of JIT with an MRP-based planning and control
system. The MRP/JIT combination creates what might be considered a hybrid manufacturing
system. Efforts to integrate MRP and JIT are no
Q5. Flow line operations and KANBAN are enhancement to MRP and not a replacement. Discuss
Answer : Kanban: Just-in-time
To Japanese managers, kanban or the just-in-time system is an approach for providing smoother
productionflowsandmakingcontinual improvements in processes and products. Kanban attempts
to reduce workinprogressto an absolute minimum.In addition, the system constantly attempts to
reduce lead times, work-in-process inventories, and setup times.
Kanban’score objective istoobtainlow-cost,high-quality, on-time production. To achieve this, the
system attempts to eliminate stock between the successive processes and to minimize any idle
equipment, facilities, or workers.

6. CASE STUDY – 1
The Hunicut and Hallock Corporation makes two versions of the same basic file cabinet, the TOL
(Top-of-the-line) five drawer file cabinet and the HQ (High-quality) five drawer filing cabinet. The
TOL and HQ use the same cabinet frame and locking mechanism. The drawer assemblies are
different although both use the same drawer frame assembly. The drawer assemblies for the TOL
cabinet use a sliding assembly that requires four bearings per side whereas the HQ sliding
assembly requires only two bearings per side. (These bearings are identical for both cabinet
types.) 100 TOL and 300 HQ file cabinets need to be assembled in week #10. No current stock
exists.
Questions :
1. Develop a material structure tree for the TOL and the HQ file cabinets.
Answer :
2. Develop a gross material requirements plan for the TOL and HQ cabinets in the previous
example.
Answer :
Gross Requirements Plan
Week 1 2 3 4 5 6 7 8 9 10
CASE STUDY – 2
(Ref to the above Case Only)
Develop a net material requirements plan for the TOL and HQ file cabinets in the previous
problems assuming current on-hand finished goods inventory of 100 TOL cabinets. The lead times
are given below.
l Painting and final assembly of both HQ and TOL requires 2 weeks.
l Both cabinet frames and lock assembly require 1 week for manufacturing.
l Both drawer assemblies require 2 weeks for assembly.
l Both sliding assemblies require 2 weeks for manufacturing.
l Bearings require 2 week to arrive from the supplier.
If the TOL file cabinet has a gross material requirements plan as shown below, no inventory, and 2
weeks lead time is required for assembly, what are the order release dates and lot sizes when lot
sizing is determined using lot-for-lot? Use a holding cost of $2.00 and a setup cost of $20.00, and
assume no initial inventory.
Gross Material Requirements Plan

7. Week 1 2 3 4 5 6 7 8 9 10
TOL 50 100 50 100
Answer :
Week
1 2 3 4 5 6 7 8 9 10
Lead
Time
TOL
Required date 100 2 weeks
Order releasedate
If the TOL file cabinet has a gross material requirements plan as shown below, no inventory, and 2
weeksof leadtimesrequiredfor assembly,what are the order release dates and lot sizes when lot
sizing is determined by EOQ (Economic Order Quantity)? Use a holding cost of $2.00 and a setup
cost of $20.00, and assume no initial inventory.
Gross Material Requirements Plan
Week 1 2 3 4 5 6 7 8 9 10
TOL 50 100 50 100
Answer :
Gross Material Requirements Plan
Week 1 2 3 4 5 6 7 8 9 10
Dear students get fully solved IMT assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601