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One hundred units of part A are needed at the start of week 6. They have a one-week lead time. Two part Bs are needed for one part A, and Bs have a two-week lead time. Which shows a proper exploding and offsetting entry in the material requirements planning grid?

User Bobef
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Final answer:

In material requirements planning, you need to order 100 units of part A in week 5 and 200 units of part B in week 3 to meet the production needs by week 6, considering the lead times of one and two weeks, respectively.

Step-by-step explanation:

The question involves material requirements planning (MRP), which is a tool used in production and inventory management. When 100 units of part A are needed at the start of week 6 with a one-week lead time, you must schedule the order for part A in week 5. Since each part A requires two part Bs and the Bs have a two-week lead time, you need to place the order for part B at the start of week 3 to ensure that they are available by the time you need to produce part A.

In an MRP grid, this information would be displayed as an 'exploding' of the quantity of part A to find out how many Bs are required, then 'offsetting' each order by the lead time for the parts. For 100 units of part A, you would require 200 units of part B, and this quantity would be entered in the schedule two weeks prior to the week when the order for part A is scheduled.

Exploding and Offsetting Example:

  • Week 5: Schedule production of 100 A (since we need them by the start of week 6).
  • Week 3: Schedule order of 200 B (since two Bs are needed for one A and B has a two-week lead time).

User Doug Breaux
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