This document discusses MRP and lot sizing techniques. It provides an example indented bill of materials and inventory records for an end item and its components. It also includes a sample master production schedule and lot sizing problem to demonstrate how different lot sizing approaches can be applied.

1. MRP and Lot Sizing Techniques

2. MRP
• BOM (Product Structure)
• MPS
• Inventory Records

3. Problem Information Summary
Indented BOM
Lowest Level Codes
Inventory Records
Item
Code
OH
LT
A
0
0
1
I
1
40
1
II
1
15
2
1
3
10
3
3
2
2
20
4
4(2)
3
2
15
1
1
4
2
30
2
a
4
10
3
b
3
10
3
A
I
1
a
2
II
a
b

4. MPS for end item A
0
1
2
3
4
5
GR
OH
POR
6
20
0
0
0
0
0
0
20
7
8
100
9

5. LOT SIZING
• Lot-for-Lot Technique
• EOQ Approach
• Minimum Cost Per Period Approach (Silver
Meal Heuristic)
• Least Unit Cost Approach
• Periodic Order Quantity Approach

6. LOT SIZING PROBLEM
0
OH
POR
35
2
3
4
5
6
7
8
9
10
35
GR
1
30
40
0
10
40
30
0
30
55
0
0
0
0
0
0
0
0
0
0

7. LOT SIZING
Holding costs = $2/unit/week
Setup costs = $200
Gross Req average per week = 27
Lead time = 1 week