Work the MRP Explosion
Calculate net component requirements from a master production schedule, bill of materials, inventory, and lead time.
Week 4 MPS requires 500 pumps. Each pump requires 2 seals. Seal inventory is 620 on hand, but 160 are allocated to service orders. There are no open seal purchase orders. Supplier lead time is 2 weeks. Gross requirement = parent quantity multiplied by BOM usage. Net requirement = gross requirement minus usable inventory and scheduled receipts. Release date = need date minus lead time. The common trap is counting all on-hand inventory as available, even when some of it is allocated or not usable for this build. Explode BOM 500 pumps x 2 seals per pump = 1,000 gross…
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in