Supply Chain Lab MRP Explorer Lab Home
Capacity & Operations

MRP Explorer: BOM Explosion

One master production schedule, a four-item bill of materials, eight weeks. Edit the MPS and watch gross-to-net requirements cascade down the tree - planned orders, lead-time offsets, lot rules, and the dreaded past-due release when a lead time doesn't fit.

How to use it

The explosion

Bill of materials

A finished unit of A needs 2×B and 1×C; each B needs 2×D and 3×C. Lead times shown per item.

Master schedule - product A

Lot-sizing rule (B, C, D)

Lot-for-lot orders exactly the net need; FOQ rounds every order up to multiples of 60 - fewer orders, more inventory.

Lead times (weeks)

–
Avg on-hand (units)
–
Peak weekly release
–
Past-due releases

Swipe each table sideways to see all eight weeks.

Try these experiments

  1. Raise D's lead time to 3 weeks - the release for the week-3 MPS lands in the past. MRP can plan it, the factory cannot do it.
  2. Switch to FOQ and compare the tiles: orders drop, average inventory jumps - the classic setup-vs-holding trade.
  3. Add a one-week spike to the MPS and watch it amplify down the tree: 30 extra A's become 60 B's, 180+30 C's and 120 D's - MRP's own bullwhip.

About this tool

The concept

MRP converts a master schedule into time-phased orders for every component, netting off stock and offsetting by lead time, level by level.

How it works

Gross requirements − on-hand − receipts = net; net becomes a planned receipt, released lead-time weeks earlier; releases explode into children's gross via BOM quantities.

Winning strategy

Watch the releases row, not the receipts: it is what purchasing must act on, and it goes past-due the moment cumulative lead time exceeds the schedule's warning.