Chap0018 - Chapter 18 Material Requirements Planning...

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Chapter 18 - Material Requirements Planning CHAPTER 18 MATERIAL REQUIREMENTS PLANNING Review and Discussion Questions 1. Discuss the meaning of MRP terms such as planned order release and scheduled order receipts . A planned order release is an order currently planned to be released. It has not been released. Consequently, the planned order release can be changed based upon changes in demand as one example. A scheduled order receipt, on the other hand, reflects an order that has already been released. The scheduled order receipt indicates the anticipated arrival of the released order. Due to variations in delivery times, it may not arrive exactly at the planned arrival time. 2. Many practitioners currently update MRP weekly or biweekly. Would it be more valuable if it were updated daily? Discuss. The performance of any operation will naturally vary from day to day. When the observed time period in which performance is measured is a week or two, the daily variations are smoothed; that is, the variations in performance are averaged. For example, below-average performance in one day may be offset by a higher-than-average performance the next day. Daily MRP runs monitor performance too closely and may even create an exception report calling a normal variation an abnormal deviation from expected output. 3. What is the role of safety stock in an MRP system? The role of safety stock in an MRP system is to buffer any uncertainties in quantities. One cause of quantity uncertainties is quality. Safety lead time should be used to offset any uncertainties in timing, from such occurrences as production or purchase delays. The addition of safety stock results in extra inventory being carried, thus reducing performance. If possible, any uncertainties in the quantities should be eliminated so that no safety stock is needed. 4. Contrast the significance of the term lead time in the traditional EOQ context and in an MRP system. In the traditional context, lead time is fixed—either as a discrete time or as a probability distribution. Such lead time constancy or variation is outside of the inventory model. Lead time in an MRP system is assumed to be a variable. While specific lead times are stated for planning purposes, these times may be speeded up or delayed as conditions warrant. Indeed, it is this ability to detect needed changes in lead times—either by expediting or de-expediting—that many users cite as one of the most valuable features of MRP. 236
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Chapter 18 - Material Requirements Planning 5. Discuss the importance of the master production schedule in an MRP system. The master production schedule “drives” the system. It states the planned due dates for end items. Material requirements planning computer runs, however, involve an iterative process. The master production schedule “proposes” or “hypothesizes” a tentative schedule.
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This note was uploaded on 07/17/2011 for the course MBA 587 taught by Professor None during the Spring '11 term at Missouri (Mizzou).

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Chap0018 - Chapter 18 Material Requirements Planning...

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