MRP processing example with shared components

Many companies have products that have shared bill of material components. Therefore raw material inventory (Level 1 or lower on the product structure tree) will be used on various Level 0 Finished Goods products. This video explains this concept and gives two examples how to calculate the net requirements for the shared components. We will go over two examples, one using an MRP matrix and another using the Algebraic Method. Content created from the Textbook "Operations Management, Sustainability and Supply Chain" 13th edition by Jay Heizer, Barry Render and Chuck Munson. Chapter 14 on Materials Requirement Planning (MRP) and ERP.