# MRP Operations Managment

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On Hand is the quantity of the item that is on hand at the beginning of period 1.
Lead time is the amount of time from when an order is placed to when it arrives. See page 278.
Lot Size - LFL means lot-for-lot, we order material only as it is needed. See page 282.
Lot size – with a quantity means the when an order is placed that quantity, or multiples of it, must be ordered. For example a case of 24 bottles of beer.
Safety Stock, the projected on hand can never fall below this number.
Based on the above, complete the MRP record for each item on the following page.
You should start at the top of the bill of material with item A. Then you should do the next level working left to right, so B and C. Then the next level, left to right. A is a parent item and B and C are children to A. D and E are children that go into the parent item C. The numbers after each item in the bill of material indicated the number of that item that goes into the parent. For example, 5 Ds go into each C. Remember, the planned order releases of the parent become the gross requirements of the child multiplied by the quantity of the child that go into the parent.

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