Measheaw_Week 4_Homework_.doc - Jennifer Measheaw Chapter...

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Jennifer Measheaw Chapter 12: Discussion and Review Questions 8: Briefly discuss the requirements for effective MRP. Answer: An effective MRP system should have - 1. A computer and the necessary software programs to handle computations and maintain records. 2. Accurate and up-to-date a. Master schedules. b. Bills of materials. c. Inventory records. 3. Integrity of file data. Accuracy is absolutely essential for a successful MRP system. Inaccuracies in inventory record files or bill-of-material files can lead to unpleasant surprises, ranging from missing parts to ordering too many of some items and too few of others, and failure to stay on schedule, all of which contribute to inefficient use of resources, missed delivery dates, and poor customer service. Companies also need to exert scheduling discipline and have in place standard procedures for maintaining and updating bills of material. Similarly, inaccurate forecasts can have serious consequences for producers of assembled items. If forecasts are overly optimistic, companies will experience relatively high holding costs, considering the excess inventory represented by the components and raw materials. Conversely, forecasts that are too low will result in shortages of component parts and require long lead times to acquire the needed components and assemble the products to alleviate the shortages. Discussion and Review Questions 13: Contrast planned-order receipts and scheduled receipts. Answer: Planned-order receipts are the quantity expected to be received by the beginning of the period in which it is shown. Under lot-for-lot ordering, this quantity will equal net requirements.
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