MRP Template

1.    Create a finished goods production plan MRP (and component B procurement plan) given the following:

o   Production cycle time = 1 month

o   Each finished good item requires 2 Part B’s; part B has a 1 month procurement lead time

o   Beginning finished product inventory is 1,000

o   Forecasted sales are as follows:

§  Month 1: 1,000

§  Month 2: 1,100

§  Month 3: 1,150

§  Month 4: 1,200

§  Month 5: 1,200

§  Month 6: 1,300

o   Safety Stock: On the first day of each month, you want to have that month's sales already in inventory

o   Capacity of the plant is 1,300 units