There are 50 units in inventory at the start of week 1 for this company, which runs a lot-for-lot MRP system. There is a one week lead time for all shipping and production quantities regardless of volume. What are the quantities of the planned orders for this item for the first six weeks? $$\begin{array} { | l | c | c | c | c | c | c | c | c | }
\hline & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \
\hline \text { Gross Requirements } & 50 & 20 & 30 & & 40 & & & \
\hline \text { Scheduled receipts } & & & & & & & & \
\hline \text { Projected ending } & & & & & & & & \
\hline \text { Inventory } & & & & & & & & \
\hline \text { Net Requirements } & & & & & & & & \
\hline \text { Planned Receipts } & & & & & & & & \
\hline \text { Planned Orders } & & & & & & & & \
\hline
\end{array}$$

Question

There are 50 units in inventory at the start of week 1 for this company, which runs a lot-for-lot MRP system. There is a one week lead time for all shipping and production quantities regardless of volume. What are the quantities of the planned orders for this item for the first six weeks? $$\begin{array} { | l | c | c | c | c | c | c | c | c | } 
\hline & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \
\hline \text { Gross Requirements } & 50 & 20 & 30 & & 40 & & & \
\hline \text { Scheduled receipts } & & & & & & & & \
\hline \text { Projected ending } & & & & & & & & \
\hline \text { Inventory } & & & & & & & & \
\hline \text { Net Requirements } & & & & & & & & \
\hline \text { Planned Receipts } & & & & & & & & \
\hline \text { Planned Orders } & & & & & & & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

In a lot-for-lot MRP system, the planned order quantity is equal to the net requirements. The net requirements are calculated by subtracting the scheduled receipts from the gross requirements. For the first six weeks, the gross requirements are 50, 20, 30, 40, 0, and 0. There are no scheduled receipts, so the net requirements are equal to the gross requirements. Therefore, the planned order quantities are 20, 30, 0, 40, 0, and 0.

There Are 50 Units in Inventory at the Start of Week