CHAPTER 15supply chain - Product Structure 15 CHAPTER Bill...

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Product Structure Bill of Materials CHAPTER 15 MATERIALS AND RESOURCE REQUIREMENTS PLANNING Material Requirements Planning (MRP) Calculates when and how much of raw materials, parts and subassemblies are needed for production - These processes share info w/ customers and suppliers for their own planning processes - Broken into 2 classes: Independent demand – demand created by customers Includes demand for finished products and replacement parts Dependent demand – demand that depends upon decisions made by internal operations managers Derived from demand for other items Calculated after managers decide which finished products will be made, how many will be made, and when they must be completed I. MATERIALS REQUIREMENTS PLANNING (MRP) - MRP – a planning system sued to ensure the right quantities of materials are available when needed - Matching supply w/ demand - Determines how much and when to produce using a time-phased schedule that is based on LT a. This schedule considers both actual orders and forecasts and is considered a push system - Used in manufacturing - Standard feature in enterprise resource planning (ERP) software - 80% of high-performing manufacturing plants have implemented MRP - Works well for computers, appliances, furniture, and motor homes II. MRP INPUTS - If inputs are wrong, outputs of MRP will be wrong - Three info inputs: a. Bill of Materials (BOM) i. BOM - A detailed description of an “end item” and list of all of its raw materials, parts, and subassemblies ii.End item may be a finished product or subassembly
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This note was uploaded on 05/25/2011 for the course SCM SCM 100 taught by Professor Jones during the Spring '11 term at Michigan State University.

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CHAPTER 15supply chain - Product Structure 15 CHAPTER Bill...

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