A multiplicative factor must be applied

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: tiplicative factor must be applied Multiplication. when more than one subassembly is required for each higher level item. each The Product Structure Diagram The product structure diagram is a graphical representation of the relationship between the various levels of the productive system. It incorporates all of the information necessary to implement the explosion calculus. Next slide depicts an end item with two levels of subassemblies. 5 Typical Typical Product Structure Diagram Diagram Example 7.1 6 Example 7.1 Example 7.1 Projected Requirement Scheduled Receipts On hand.inv(end of week) Planned order release 7 Lot Sizing The simplest lot sizing scheme for MRP systems is lotThe for-llot (abbreviated LFL). This means that requirements ot are met on a period by period basis as they arise in the explosion calculus. However, more cost effective lot sizing plans are possible. These would require knowledge of the cost of setting up for production and the cost of holding each item. This brings to mind the EOQ formula from Chapter 4, which can be used in this context. However, there are better methods. context. Statement Statement of the Lot Sizing Problem Problem Assume there is a known set of requirements (r1, r2, . . . (r rn) over an n period planning horizon. Both the set up cost, K, and the holding cost, h, are given. The objective h, are is to determine production quantities (y1, y2, . . ., yn) to (y ., meet the requirements at minimum cost. The feasibility condition to assure there are no stockouts in any period is: is: j j ∑ y ≥ ∑r i i =1 i for 1 ≤ j ≤ n. i =1 8 Lo...
View Full Document

This document was uploaded on 03/23/2014.

Ask a homework question - tutors are online