Material Requirement

Planning
(MRP I)
 Demand Patterns
2000 2000

Order Order
1500 1000 on 1500
1000 on
day 3 day 8
Bicycles

Rims
1000 1000

500 500

Reorder point
| | | | | | | | | | | | | | | | | | | |
0 0
1 5 10 1 5 10
Day Day
(a) (b)
Figure1.1
 Material Requirements
Plan Output
Authorized Other
master production sources
schedule of demand

Engineering
Inventory Inventory MRP Bills of
and process
transactions records explosion materials
designs

Material
requirements
plan
Figure 1.2
MRP II Figure 1.15

Customer orders Forecasts

Master production schedule

Bills of materials
MRP Inventory records
Routings
explosion Inventory transactions
Time standards

Material requirements plan

Cost and
Manufacturing resource plan
financial data

Financial/ Sales and Human

Purchasing Manufacturing
accounting marketing resource
reports reports
reports reports reports
Bill of Materials

Back slats Seat cushion

Leg supports Seat-frame

boards

Back Front
legs legs A
Ladder-back
chair

Figure 1.3
Bill of Materials
A
Ladder-back
chair

B (1) C (1) D (2) E (4)

Ladder-back Seat Front Leg
subassembly subassembly legs supports

F (2) G (4) H (1) I (1)

Back Back Seat Seat
legs slats frame cushion

J (4)
Seat-frame
boards

Figure 1.3
 Master Production Schedule
April May

1 2 3 4 5 6 7 8

Ladder-back chair 150 150

Kitchen chair 120 120

Desk chair 200 200 200 200

Aggregate
production plan 670 670
for chair family

Figure 1.4
Inventory Record Figure 1.5

Item: C Lot Size: 230 units

Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37
inventory

Planned
receipts

Planned order
releases
Inventory Record Figure 1.5

Item: C Lot Size: 230 units

Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37
inventory

Planned
receipts Explanation:
Gross requirements are the total demand for
Planned order
the two chairs. Projected on-hand inventory
releases
in week 1 is 37 + 230 150
Inventory Record Figure 1.5

Item: C Lot Size: 230 units

Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117
inventory

Planned
receipts Explanation:
Gross requirements are the total demand for
Planned order
the two chairs. Projected on-hand inventory
releases
in week 1 is 37 + 230 150 = 117 units.
Inventory Record Figure 1.5

Item: C Lot Size: 230 units

Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117
inventory

Planned
receipts

Planned order
releases
Inventory Record Figure 1.5

Item: C Lot Size: 230 units

Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117
inventory

Planned
receipts Scheduled
Projected on-hand Inventory on Gross
or planned
inventory balance
Planned order = hand at end of + receipts in requirements
at end of week t week t - 1 in week t
releases week t
Inventory Record Figure 1.5

Item: C Lot Size: 230 units

Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117 117 117 3 3 153 273 273
inventory

Planned
receipts Scheduled
Projected on-hand Inventory on Gross
or planned
inventory balance
Planned order = hand at end of + receipts in requirements
releases at end of week t week t - 1
week t
in week t
Planned Orders Figure 1.6

Explanation:
Item: C
Without a new order in week 4, Lot Size: 230 units
Description: Seat subassembly Lead Time: 2 weeks
there will be a shortage of three
units: 117 + 0 + 0 120 = 3 Week
units.
1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117 117 117 3 3 153 273 273
inventory

Planned
receipts

Planned order
releases
Planned Orders Figure 1.6

Item: C Lot Size: 230 units

Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117 117 117
inventory

Planned
receipts

Planned order
releases
Planned Orders Figure 1.6

Explanation:
Item: C Lot Size: 230 units
Adding the planned
Description: receipt
Seat subassembly Lead Time: 2 weeks
brings the balance to
Week
117 + 0 + 230 120 = 227 units.
1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117 117 117 227
inventory

Planned
230
receipts

Planned order
releases
Planned Orders Figure 1.6

Explanation:
Item: C Lot Size: 230 units
Adding the planned
Description: receipt
Seat subassembly Lead Time: 2 weeks
brings the balance to
Week
117 + 0 + 230 120 = 227 units.
1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117 117 117 227
inventory

Planned
230
receipts

Planned order
releases
Planned Orders Figure 1.6

Explanation:
Item: C Lot Size: 230 units
Offsetting for Seat
Description: a two-week lead time
subassembly Lead Time: 2 weeks
puts the corresponding planned
Week
order release back to week 2.
1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117 117 117 227
inventory

Planned
230
receipts

Planned order
230
releases
Planned Orders Figure 1.6

Explanation:
Item: C Lot Size: 230 units
Offsetting for Seat
Description: a two-week lead time
subassembly Lead Time: 2 weeks
puts the corresponding planned
Week
order release back to week 2.
1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117 117 117 227
inventory

Planned
230
receipts

Planned order
230
releases
Planned Orders Figure 1.6

Explanation:
Item: C Lot Size: 230 units
TheDescription:
first planned
Seat order lasts
subassembly Lead Time: 2 weeks
until week 7, when projected
Week
inventory would drop to 43.
1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117 117 117 227 227 77 43
inventory

Planned
230
receipts

Planned order
230
releases
Planned Orders Figure 1.6

Explanation:
Item: C Lot Size: 230 units
Adding the second
Description: planned
Seat subassembly Lead Time: 2 weeks
receipt brings the balance to
Week
77 + 0 + 230 120 = 187.
1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117 117 117 227 227 77
inventory

Planned
230 230
receipts

Planned order
230
releases
Planned Orders Figure 1.6

Explanation:
Item: C Lot Size: 230 units
Adding the second
Description: planned
Seat subassembly Lead Time: 2 weeks
receipt brings the balance to
Week
77 + 0 + 230 120 = 187.
1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117 117 117 227 227 77 187
inventory

Planned
230 230
receipts

Planned order
230
releases
Planned Orders Figure 1.6

Explanation:
Item: C Lot Size: 230 units
TheDescription:
corresponding planned
Seat subassembly Lead Time: 2 weeks
order release is for week 5.
Week

1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117 117 117 227 227 77 187
inventory

Planned
230 230
receipts

Planned order
230 230
releases
Planned Orders Figure 1.6

Item: C Lot Size: 230 units

Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117 117 117 227 227 77 187 187
inventory

Planned
230 230
receipts

Planned order
230 230
releases
Lot-Sizing Rules POQ
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117
inventory

Planned
receipts

Planned order
releases
Lot-Sizing Rules POQ
Item: C Lot Size: P = 3
POQ Gross
Description: Seat requirements
subassembly Lead Time: 2 weeks
Inventory at
lot = for weeks end of week 3
size 4, 5, and 6 Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117
inventory

Planned
receipts

Planned order
releases
Lot-Sizing Rules POQ
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117
inventory

Planned
receipts

Planned order
releases
Lot-Sizing Rules POQ
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0 + 150)
Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117
inventory

Planned
receipts

Planned order
releases
Lot-Sizing Rules POQ
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0 + 150) 117
Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117
inventory

Planned
receipts

Planned order
releases
Lot-Sizing Rules POQ
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0 + 150) 117 = 153 units
Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117
inventory

Planned
153
receipts

Planned order
releases
Lot-Sizing Rules POQ
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0 + 150) 117 = 153 units
Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117
inventory

Planned
153
receipts

Planned order
releases
Lot-Sizing Rules POQ
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0 + 150) 117 = 153 units
Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117 150
inventory

Planned
153
receipts

Planned order
releases
Lot-Sizing Rules POQ
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0 + 150) 117 = 153 units
Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117 150
inventory

Planned
153
receipts

Planned order
153
releases
Lot-Sizing Rules POQ
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0) 0 = 120 units
Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117 150 150 0 0 0
inventory

Planned
153 120
receipts

Planned order
153 120
releases
Lot-Sizing Rules POQ
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117 150 150 0 0 0
inventory

Planned
153 120
receipts

Planned order
153 120
releases
Lot-Sizing Rules POQ Figure 1.7
Lot-Sizing Rules L4L
Item: C Lot Size: L4L
Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117
inventory

Planned
receipts

Planned order
releases
Lot-Sizing Rules L4L
Item: C Lot Size: L4L
L4L
Description:Gross
Seat subassembly Lead Time: 2 weeks
lot = requirements
in week 4 Inventory balance
at end of week 3
size Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117
inventory

Planned
receipts

Planned order
releases
Lot-Sizing Rules L4L
Item: C Lot Size: L4L
L4L
Description: Seat subassembly Lead Time: 2 weeks
lot = 120 117 = 3
size Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117
inventory

Planned
receipts

Planned order
releases
Lot-Sizing Rules L4L
Item: C Lot Size: L4L
L4L
Description: Seat subassembly Lead Time: 2 weeks
lot = 120 117 = 3
size Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117
inventory

Planned
3
receipts

Planned order
releases
Lot-Sizing Rules L4L
Item: C Lot Size: L4L
L4L
Description: Seat subassembly Lead Time: 2 weeks
lot = 120 117 = 3
size Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117 0
inventory

Planned
3
receipts

Planned order
3
releases
Lot-Sizing Rules L4L
Item: C Lot Size: L4L
Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117 0 0 0
inventory

Planned
3
receipts

Planned order
3
releases
Lot-Sizing Rules L4L
Item: C Lot Size: L4L
Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117 0 0 0
inventory

Planned
3 150
receipts

Planned order
3 150
releases
Lot-Sizing Rules L4L
Item: C Lot Size: L4L
Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117 0 0 0 0
inventory

Planned
3 150 120
receipts

Planned order
3 150 120
releases
Lot-Sizing Rules L4L
Item: C Lot Size: L4L
Description: Seat subassembly Lead Time: 2 weeks

Week

1 2 3 4 5 6 7 8

Gross
requirements 150 120 150 120

Scheduled
receipts 230

Projected
on-hand 37 117 117 117 0 0 0 0 0
inventory

Planned
3 150 120
receipts

Planned order
3 150 120
releases
Lot-Sizing Rules L4L Figure 1.8
Lot-Sizing Rule Comparison
The FOQ rule generates high average
inventory because it creates remnants.
The POQ rule reduces
average on-hand inventory
because it does a better
job of matching order
quantity to requirements.
The L4L rule minimizes
inventory investment
but maximizes the number of orders placed.
Safety Stock Figure 1.9
MRP Outputs
MRP
explosion

Material requirements plan

Action notices Priority reports Capacity reports
Releasing new orders Dispatch lists Capacity requirements planning
Adjusting due dates Supplier schedules Finite capacity scheduling
Input-output control
Routings
and time
standards

Manufacturing resources plan

Cost and
Performance reports
price data

Figure 1.10
Bill of Materials
C (1)
Seat
subassembly

H (1) I (1)
Seat Seat
frame cushion

J (4)
Seat-frame
Figure 1.11 boards
 MRP Explosion
Item: Seat subassembly
Lot size: 230 units

Week
Lead
time: 2 weeks 1 2 3 4 5 6 7 8

Gross
requirements 150 0 0 120 0 150 120 0

Scheduled
receipts 230 0 0 0 0 0 0 0

Projected
on-hand 37 117 117 117 227 227 77 187 187
inventory

Planned
230 230
receipts

Planned order
230 230
releases

Figure 1.12
 MRP Explosion
Item: Seat subassembly
Lot size: 230 units

Week
Lead
time: 2 weeks 1 2 3 4 5 6 7 8

Gross
150 0 0 120 0 150 120 0
requirements

Planned
230 230
receipts

Planned
order 230 230
releases

Figure 1.12
 MRP Explosion Item: Seat subassembly
Lot size: 230 units

Week
Lead
time: 2 weeks 1 2 3 4 5 6 7 8

Gross
150 0 0 120 0 150 120 0
requirements

Planned
230 230
receipts

Planned
order 230 230
releases

Item: Seat frames Item: Seat cushion

Lot size: 300 units Lot size: L4L

Week Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8

Gross Gross
requirements requirements

Scheduled Scheduled
0 300 0 0 0 0 0 0 0 0 0 0 0 0 0 0
receipts receipts

Projected Projected
on-hand 40 on-hand 0
inventory inventory

Planned Planned
receipts receipts

Planned Planned
order order
releases releases

Figure 16.12
 MRP Explosion Item: Seat subassembly
Lot size: 230 units

Week
Lead
time: 2 weeks 1 2 3 4 5 6 7 8

Gross
150 0 0 120 0 150 120 0
requirements

Planned
230 230
receipts

Planned
order 230 230
releases

Usage quantity: 1 Usage quantity: 1

Item: Seat frames Item: Seat cushion
Lot size: 300 units Lot size: L4L

Week Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8

Gross Gross
0 230 0 230
requirements requirements

Scheduled Scheduled
0 300 0 0 0 0 0 0 0 0 0 0 0 0 0 0
receipts receipts

Projected Projected
on-hand 40 on-hand 0
inventory inventory

Planned Planned
receipts receipts

Planned Planned
order order
releases releases

Figure 16.12
 MRP Explosion Item: Seat subassembly
Lot size: 230 units

Week
Lead
time: 2 weeks 1 2 3 4 5 6 7 8

Gross
150 0 0 120 0 150 120 0
requirements

Planned
230 230
receipts

Planned
order 230 230
releases

Usage quantity: 1 Usage quantity: 1

Item: Seat frames Item: Seat cushion
Lot size: 300 units Lot size: L4L

Week Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8

Gross Gross
0 230 0 0 230 0 230 0 0 230
requirements requirements

Scheduled Scheduled
0 300 0 0 0 0 0 0 0 0 0 0 0 0 0 0
receipts receipts

Projected Projected
on-hand 40 on-hand 0
inventory inventory

Planned Planned
receipts receipts

Planned Planned
order order
releases releases

Figure 16.12
 MRP Explosion Item: Seat subassembly
Lot size: 230 units

Week
Lead
time: 2 weeks 1 2 3 4 5 6 7 8

Gross
150 0 0 120 0 150 120 0
requirements

Planned
230 230
receipts

Planned
order 230 230
releases

Item: Seat frames Item: Seat cushion

Lot size: 300 units Lot size: L4L

Week Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8

Gross Gross
0 230 0 0 230 0 0 0 0 230 0 0 230 0 0 0
requirements requirements

Scheduled Scheduled
0 300 0 0 0 0 0 0 0 0 0 0 0 0 0 0
receipts receipts

Projected Projected
on-hand 40 40 110 110 110 180 180 180 180 on-hand 0 0 0 0 0 0 0 0 0
inventory inventory

Planned Planned
300 230 230
receipts receipts

Planned Planned
order 300 order 230 230
releases releases

Figure 1.12
 MRP Explosion
Item: Seat frames
Lot size: 300 units

Week
Item: Seat cushion
Lot size: L4L

Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8

Gross Gross
0 230 0 0 230 0 0 0 0 230 0 0 230 0 0 0
requirements requirements

Planned Planned
300 230 230
receipts receipts

Planned Planned
order 300 order 230 230
releases releases

Figure 1.12
 MRP Explosion
Item: Seat frames
Lot size: 300 units

Week
Item: Seat cushion
Lot size: L4L

Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8

Gross Gross
0 230 0 0 230 0 0 0 0 230 0 0 230 0 0 0
requirements requirements

Planned Planned
300 230 230
receipts receipts

Planned Planned
order 300 order 230 230
releases releases

Item: Seat-frame boards

Lot size: 1500 units

Week
Lead
time: 1 week 1 2 3 4 5 6 7 8

Gross
requirements

Scheduled
0 0 0 0 0 0 0 0
receipts

Projected
on-hand 200
inventory

Planned
receipts

Planned
order
releases

Figure 1.12
 MRP Explosion
Item: Seat frames
Lot size: 300 units

Week
Item: Seat cushion
Lot size: L4L

Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8

Gross Gross
0 230 0 0 230 0 0 0 0 230 0 0 230 0 0 0
requirements requirements

Planned Planned
300 230 230
receipts receipts

Planned Planned
order 300 order 230 230
releases releases

Usage quantity: 4
Item: Seat-frame boards
Lot size: 1500 units

Week
Lead
time: 1 week 1 2 3 4 5 6 7 8

Gross
0 0 0 1200 0 0 0 0
requirements

Scheduled
0 0 0 0 0 0 0 0
receipts

Projected
on-hand 200
inventory

Planned
receipts

Planned
order
releases

Figure 1.12
 MRP Explosion
Item: Seat frames
Lot size: 300 units

Week
Item: Seat cushion
Lot size: L4L

Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8

Gross Gross
0 230 0 0 230 0 0 0 0 230 0 0 230 0 0 0
requirements requirements

Planned Planned
300 230 230
receipts receipts

Planned Planned
order 300 order 230 230
releases releases

Item: Seat-frame boards

Lot size: 1500 units

Week
Lead
time: 1 week 1 2 3 4 5 6 7 8

Gross
0 0 0 1200 0 0 0 0
requirements

Scheduled
0 0 0 0 0 0 0 0
receipts

Projected
on-hand 200 200 200 200 500 500 500 500 500
inventory

Planned
1500
receipts

Planned
order 1500
releases

Figure 1.12