BA 357 Assignment 2: MRP Planning

This assignment, part of BA 357, focuses on Material Requirements Planning (MRP). Students are tasked with creating MRP plans for specific items (C, E, H, K, P, and L) related to two products, Clodhopper and Clodbuster, for a newly acquired subsidiary. The assignment utilizes provided data including MPS plans, bill of materials, inventory records, lot-sizing rules, and scheduled receipts. Students must use a supplied MRP form, adhering strictly to its format, and apply various lot-sizing rules (FOQ, POQ) while considering safety stock levels and lead times. The assignment emphasizes the practical application of MRP principles and the use of Excel for efficient planning, requiring specific formatting and formula documentation within the spreadsheet. Successful completion involves accurate planning, adherence to instructions, and professional presentation.

BA 357: Fall 2016
Assignment – 2
Due November 15th
Clodhopper Clodbuster
Background:
Your company has just acquired a new subsidiary that makes two products, Clodhopper and
Clodbuster. The Clodhopper is intended for the general consumer market and its demand is higher
and more seasonal than the Clodbuster, which is intended for the commercial user market. Both
products share a number of component parts and subassemblies, primarily differing in their engine
and tiller subassemblies. All of the managers at the acquired company quit the day your company
took possession. You are the person who has been assigned to run this acquisition. Since all of the
managers quit, the only planning information you have is historical data.
Assignment:
Your task is to create material requirements plans for items C, E, H, K, P, and L.
 Use the MRP form supplied and print the spreadsheets (landscape) two to a page (3 pages
total). Fill in all appropriate data (lot size, ordering rule, etc).
 Do not make any changes to the format/layout of the spreadsheet. This is one place in
industry where creativity in presenting data is not appreciated since many of the cells in the
forms are normally linked, and changes can lead to significant errors in the results.
 Use the comment function to show the formula for “projected on-hand inventory.” The
formula must be understandable (e.g. ”beginning inventory + production…” NOT “D12 +
E12…”).
 Use the header function to show your name in the upper right corner of all pages.
 Staple the three landscape pages in the upper right corner, in the order C & E on the first
page, H & K on the second page, and P & L on the third page (no cover sheet).
Part 2 Data:
The Assn – 3 Student” spreadsheet contains five different worksheets:
 MPS approved plans for Clodhopper and Clodbuster for the first three months of 2010.
 Bill of materials data for ClodHopper and ClodBuster, including quantities required per
product and assembly times/lead times
 Inventory records and lot-sizing rules for all subassemblies and component parts

 Scheduled receipts (production commitments and purchase orders that have been scheduled
by previous MPS and MRP plans for delivery in 2010.
 MRP form to use for the items requested above
Additional information:
 Remember that the FOQ lot-sizing rule allows multiple orders. That is, if your plan requires
450 units in a given period, current inventory is 75 units, and the FOQ order size is 100 units,
then you would request 400 units (four orders) from the vendor or assembly production line.
 For items purchased using the POQ lot-sizing rule, consider that the time between orders
begins at the start of the plans. That is, if the POQ period is 3, you can only have planned
receipts (or scheduled receipts) in periods 1, 4, 7, and so on. Unlike the other ordering
schemes where you first determine when a new order must be received and then schedule the
order earlier according to the lead time, for POQ you look at future needs that must be satisfied
until another POQ order can be placed.
 Do not schedule MRP planned orders in the line for scheduled receipt items. Scheduled
receipts have already been started or ordered on previous MRP plans for delivery in 2010 and
you are not allowed to make any additional entries on this line. The values on this line are to
be added to the projected on-hand inventory when each scheduled receipt arrives. Do not
reflect the scheduled receipts into planned order releases.
 Some parts and subassemblies have desired safety stock levels. Be sure to order enough or
early enough to ensure these levels are maintained, limited only by any lead-time constraints.
When there is no safety stock, maintain the projected on-hand greater than or equal to zero.
 Use the power of Excel as much as possible for filling out your MRP forms. Doing so will
save you considerable time in completing your assignment and is representative of how these
processes are done in industry. Use the comment function to show the formula for “projected
on-hand inventory.”
Hint: Entering new order quantities (planned receipts) when needed is best done manually
whenever the on-hand inventory values indicate that you would not have enough unless an
order is placed.
Part 2 Grading:
There are 90 points possible on this assignment. Grading criteria include proper application of the
planning methods, following all directions, and professional appearance.
Use the Excel file: Class Assn – 2 Student for the required information and
MRP forms