ops mgt 24_MRP_ERP_Spring09-2

ops mgt 24_MRP_ERP_Spring09-2 - Material Requirements...

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07/12/2007 Dependent Demand Inventory Click to edit Master subtitle style 11 Material Requirements Planning (MRP)
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Dependent Demand Inventory 07/12/2007 22 So far we’ve looked at demand forecasting… and inventory management… Question: how do firms actually organize things to turn materials into finished products?
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Dependent Demand Inventory 07/12/2007 33 Dependent vs Independent Demand n Dependent Demand ¨ Demand for a component (raw material, part, sub- assembly) is dependent on the demand for the end- item into which the component goes. n demand often occurs in batches n Independent Demand ¨ Demand for an item is independent of the demand for other items. These demands are typically determined by outside customers MRP Forecasting
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Dependent Demand Inventory 07/12/2007 44 Master Production Schedule (MPS) n Time-phased plan specifying how many and when the firm plans to build each end item Aggregate Plan (Product Groups) MPS (Specific End Items)
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Dependent Demand Inventory 07/12/2007 55 MPS n Detailed schedule and sequence ¨ Production scheduling algorithms for sequence n Tracks orders sold and projected inventories to adjust schedule as needed ¨ Projected inventories are calculated based on either demand forecast or booked orders, whichever is greater n “Available to Promise” is scheduled production not yet sold ¨ Only calculated for dates when production is scheduled ¨ = Difference between scheduled production and booked orders until next scheduled production ¨ Projected on-hand inventory is not included as it could be sold in preceding weeks
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Dependent Demand Inventory 07/12/2007 66 MPS Example – Maine Woods Toy Co. Month Demand Forecast ST Production OT Production Start Inventory End Inventory Oct 2,900 2,000 400 500 Nov 2,400 2,000 400 Dec 2,000 2,000 0 Excerpted from the aggregate plan… Demand forecast is 50% tricycles, 25% wagons, 25% scooters 0 0 0 0 0
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Dependent Demand Inventory 07/12/2007 77 MPS Example – Maine Woods Toy Co. 41 42 43 44 45 46 47 48 49 50 51 52 Tricycle 300 300 300 300 300 300 300 300 250 250 250 250 Wagon 300 300 300 300 250 250 Scooter 300 300 300 300 250 250 Totals 2,000 Week Product 2,400 2,400 October November December Month One possible MPS…
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Dependent Demand Inventory 07/12/2007 88 MPS Example – Maine Woods Toy Co.
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This note was uploaded on 01/25/2011 for the course MGT 3501 taught by Professor Chang during the Spring '10 term at Georgia Institute of Technology.

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ops mgt 24_MRP_ERP_Spring09-2 - Material Requirements...

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