This preview shows page 1. Sign up to view the full content.
Unformatted text preview: an environment in which
substantial variation of sales are anticipated (and can be
forecasted accurately), MRP has a substantial advantage.
Main Advantage of JIT over MRP: JIT reduces inventories to
a minimum. In addition to saving direct inventory carrying
costs, there are substantial side benefits, such as
improvement in quality and plant efficiency.
improvement 2 MRP
At the heart of the production plan are the forecast of
demand for the end items produced over the planning
horizon. (the products shipped out the door)
The MRP system starts with the MPS or Master
Production Schedule. This is the forecast for the sales of
the end item over the planning horizon.
The MPS is broken down into a detailed schedule of
production for each of the components that compromise
an end item.
Schematic of the
Productive 3 MPS
The data sources for determining the MPS include:
Firm customer orders
Forecasts of future demand by item
Safety stock requirements
Internal orders from other parts of the organization
The Three Major Control
Phases of the Productive System
Phases 4 The Explosion Calculus
The explosion calculus is a set of rules for converting the
master production schedule to a requirements schedule
for all subassemblies, components, and raw materials
necessary to produce the end item.
There are two basic operations comprising the explosion
• Time phasing. Requirements for lower level items
must be shifted backwards by the lead time required
to produce the items
• Multiplication. A mul...
View Full Document
- Spring '14