krm8_ism_ch15 - 15 Chapter Resource Planning DISCUSSION...

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Chapter 15 Resource Planning DISCUSSION QUESTIONS 1. The purpose of this exercise is to get the students to think about the usefulness of ERP for each of their major areas of interest. Because groups consist of different functional area representatives, the discussion is intended to emphasize the cross-functional needs that are satisfied with an information system such as ERP. Some responses to this exercise include: q Marketing—information about the availability of finished products that can be promised for delivery; finished goods inventory performance (service levels, stockouts). q Finance—short-term financing needs for production plans, developed from the order releases and projected inventory levels. q Accounting—billing invoices for products shipped to customers; payments to suppliers of raw materials and purchased components, developed from the schedule of orders actually received. q Operations—the schedule of order releases to support the master schedule; estimates of capacity requirements at critical work centers. 2. Some responses from each functional area could include: q Marketing: The available-to-promise quantities because they determine when orders can be promised to customers, the history of orders accepted for each product by time period because this information can be useful in projecting future demand patterns. q Finance: The projected MPS quantities and inventory levels because they will indicate cash needs. q Operations: The MPS start quantities because they indicate when production of products must begin to meet customer promises and because they provide the basis for estimating capacity needs at critical workstations. 3. A master flight schedule specifies the arrival and departure times for all the flights an airline must produce to meet customer demands. Here, the lead time is the time between departure and arrival, which is similar to the lead time in producing a quantity of a product. The passenger size of the aircraft is analogous to a production quantity, and the available-to-promise quantity in manufacturing bears similarity to the seats available on a given flight. In general, the flight schedule can be used to estimate the needs for resources such as pilots, flight attendants, airport slots, and aircraft.
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175 l PART 3 l Managing Value Chains 4. The principles of MRP can be used for UPS by identifying bills of resources for resources such as employees, trucks, planes, and equipment. Forecasts of delivery requirements and the BORs can be used to estimate resource needs and project the loads on critical sorting operations. PROBLEMS 1. Bill of materials, Fig. 15.26 a. Item I has only one parent (E). However, item E has two parents (B and C). b.
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krm8_ism_ch15 - 15 Chapter Resource Planning DISCUSSION...

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