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OM2-Navin Verma-Resource Planning

Case study: Material shortage review at IFR India Limited.

M/s IFR India Limited is a Home appliances manufacturing company. On 12th August, the company
was faced a with a critical situation when the MRP module of the ERP software required a
necessary upgrade and was shut down for a day for testing before release. The SR001 - Pins which
was in short supply required close monitoring. Accordingly, the Operations Head called the
scheduler and asked him to calculate the exact shortage position of this part. The relevant data
for the blades is as follows:

a. The Master Production schedule:


Serial # Item Code Description Quantity FG reqd. Date
1 MA001 Mixer Blender 3000 30-Aug-19

b. Item Master:
Item Code Description Process Lead Cost (Rs) each Pref. Source
Time
MA001 Mixer Blender 5 days 2450 Final Assembly shop
BA001 Cutter 0 day 75 Blade Assembly
shop
SR001 Pin 1 day 12 Hardware Supplier

c. Bill of Material:
Level Item Code Description Unit of Quantity
Measure(UOM)
0 MA001 Mixer Blender Nos 1
-1 BA001 Cutter Nos 3
--2 BS001 Metal plate Sqm 0.1
--2 SR001 Pins Nos 3
-1 MA001 Motor Nos 1
-1 RA001 Rod Nos 1
-1 HA001 Hardware set Lot 1

d. Inventory On-Hand:
Item Code Description Quantity UOM Location
SR001 Pins 4000 Nos Blade Assembly
shop

e. Safety Stock requirement list


Item Code Description SS Safety Stock UOM Review Interval
quantity
SR001 Pins 1000 Nos 1 Year

f. Open Purchase Orders


Item Code Description Open Supply UOM Receipt Date
Quantity
SR001 Pins 2000 Nos 23-Aug-19

Develop the MRP sheet for SR001 – Pin, and establish the action the Operations Head will
need to take for continued production (mention Order quantity and Order release date).

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