Speaker 1: In this session, I will talk about Material Requirement Planning. Based on Product Tree, we compute the number of components and number of pieces that we need. This is a product tree. We have a Product A to produce each unit of Product A, we need two units of Product B, and one unit of Product C. For each unit of Product C, we need 2E, and we need 2F. For each unit of Product B, we need 3D. Therefore, for two units of Product B, we need 3*2=6. For each unit of Product B, we need one unit of Product E or component E. For two of that, we need 2E. For each Product D, we need 4Es. Therefore 6*4=24. We need 24E here, 2E here, and 2E here. Therefore, total we need 28E. D we need 6F, we need 2B, we need 2C, we need one, and A we need one. For 1A, we need 2B and 1C, 6D, 2F, and 28E. Here I have typed the same information. Now let's look at this problem. Here, we need 10A. For each A, we need 2B and 1C. Now suppose we need 10As and suppose we have 4B, 10C, 8D, 60E, and no F. Since I need 10A, therefore, I will need 2*10=20B, and because I have 4Bs, therefore, I need 16Bs, and this inventory is zero. For each A, I need 1C, for 10A, I need 10C. But because I already have 10Cs, therefore, I need no C because I need no C here, therefore I don't need any E or any F. Since I need 16B, then I have 16*3=48D. I have 8Ds, therefore, I need 40Ds, and that inventory is also zero. This inventory is also zero. I need 16B, and for each B, I need 1E here. Therefore, that is 1*16=16. But I already have 60E-60, and that will leave me with 44. That 60 is turned into 44. Let me repeat the same thing. That is the computation 10*2, 10*1 minus inventory, minus inventory, 16 units of B is needed and no C. Therefore, we are done with this brand. That is the same computation, 16*3 minus inventory. That is what is needed and here also 16*1 minus inventory. That is what is still left in inventory. We have 44 here. Therefore, here I have 16*4. Is that correct? Do I need 16*4? No, because for each B, I need 3D, and for each D, I need 4E. This 16 cannot directly come from E, should go to D first. Should I put 16*3, which is 48 here? No, because out of that 48, I have some inventory over them, and I need only 40. What I should do, I should bring this 40 and put it here and make it 40. Now, 40*4=160E but I have 44E over there, which is here to should subtract -44, and that is 116. This is the end of the story what we need of each component to end up with 10 units of A for which we have no inventory of B, C or D numbers, 116, 40, 16, and nothing here. Now, let's solve this problem. We have a Product A. We have the inventory of all the parts, raw material, and components that are supposed to go into B. Also, we have the requirements. For example, for each A, we need 2B. Therefore, if I need 20A, then I need 40B. For each A, I need 1C. Therefore, for 20A, I need 20C, but I do have 10 inventory, and that makes it 10. For B also, I have 10 units of inventory, so I subtract it and make it 30. Now, we go to D for each unit of A, we need 3D, and therefore for 20, I need 60D, but I do have 25D, therefore 60-25, that will be 35. I need 35 here, D, I need 10 here, C, and I need 30 here B. Here I need 30. That would be 30*2, which makes it 60. That would be 30*3, which makes it 90, 10*2, which makes it 20, 10*2, which makes it 20, 35*4, which makes it 140, 35*2 makes it 70 and these are what I need. But here, this is E, this is E, this is E, add them up. Same thing that I computed over there and the same thing that I have computed it here. Here I need 30*2, which is 60, but I have 12, and that leaves 48, 30*3 is 90-30, which is over there, makes it 60, 10*2, which is 20-5, makes it 15, 10*2=20, and I have already depleted what I had from E. I have no inventory for E anymore, so I need all 20. H 35*4, as I said, 140, and we have no H so we need this 140. E, again, we are already out of E, but here we need 35*2, which is 70. A, I need 20B, I need 30, C10, D35. Then when I go to the next level, 60F, 15G, 140H, and E, I need 70 here, 90+48=138. 138, 60, 15, 140, B is 30. We have found it here. C is 10, we have found it here, and D is 35, we have found it here. Seems we are fine.