Lecture 09 (6 slides per page)

Lecture 09 (6 slides per page) - BUS 105 Production and...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
BUS 105: Production and Operations Management Copyright: Mohsen ElHafsi 2011 1 BUS 105 Production/Operations Management Material Requirements Planning Material Requirement Planning Computer-based information system that translates master schedule requirements for end items into time-phased requirements for subassemblies, components and raw materials components, and raw materials Provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced Driven by dependent demand MRP Objectives Improve customer service Reduce inventory investment Improve coordinating production and thus, plant operating efficiency Independent vs. Dependent Demand Independent Demand (Demand for the final end-product or demand not related to other items) Dependent Demand Finished product (Derived demand items for component parts, subassemblies, raw materials, etc) Component parts Master Production Scheduling Time-phased plan specifying how many and when the firm plans to build each end item Aggregate Plan (Product Groups) MPS (Specific End Items) From Aggregate plan to MPS Month 1 2 Mattress production 900 950 Aggregate production Plan for mattresses 1 2 3 4 5 6 7 8 Model 327 200 400 200 100 Model 538 100 100 150 100 Model 749 100 200 200 Master Production Schedule for mattress models
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon