Description seat subassembly lot size l4l lead time 2

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Description: Seat subassembly Lot Size: L4L Lead Time: 2 weeks Gross requirements 150 150 1 230 230 117 117 2 3 120 120 4 5 150 150 6 120 120 7 8 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 117 3 3 0 150 0 0 150 0 120 120 0
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Lot-Sizing Rule Comparison Lot-Sizing Rule Comparison The FOQ rule generates high average The FOQ rule generates high average inventory because it creates remnants. inventory because it creates remnants. The POQ rule reduces The POQ rule reduces average on-hand inventory average on-hand inventory because it does a better because it does a better job of matching order job of matching order quantity to requirements. quantity to requirements. The L4L rule minimizes The L4L rule minimizes inventory investment inventory investment but maximizes the number of orders placed. but maximizes the number of orders placed.
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Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Gross requirements 150 1 2 3 120 120 4 5 150 6 120 120 7 8 Planned receipts Planned order releases Week 0 0 0 0 230 230 230 230 Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 0 1 0 2 3 0 4 5 6 7 8 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 40 Week 230 230 0 0 0 0 300 0 0 0 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 0 1 0 2 3 0 4 5 6 7 8 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 0 Week 230 230 0 0 0 0 0 0 0 0 Usage quantity: 1 Usage quantity: 1 Usage quantity: 1 MRP Explosion MRP Explosion Figure 16.12 Figure 16.12
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Two Basic Principles for MRP Net Requirement Principle: Derive the exact demand of dependent items from production schedule of their parent items and the available inventory. Lead Time Principle: Offset the time for replenishment orders relative to the date when they are really needed.
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Materials Requirements Planning (MRP) MRP: a computerized information systems developed to aid companies manage dependent demand inventory and schedule replenishment orders. Planning Factors: Planning Lead Time Time elements of planning lead times Implementations of inaccurate planning lead times Lot-Sizing Rules Static lot-sizing Fixed quantity (FOQ) rule Quantity discounts, minimum purchase quantity, or EoQ Dynamic Lot-Sizing Periodic order quantity (POQ) rule Lot for Lot (L4L) rule: Special case of POQ Safety Stock More complex for dependent-demand items
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MRP: Development and Challenges Development of MRP system: Stage 1: buffer to order release (before 1950s) Stage 2: maintain valid order due-date ( 1960s) Stage 3: improving planning and execution (1970)) Stage 4: integrating all operations planning /scheduling /controlling activities into MRP II system
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MRP: Development and Challenges (II) Challenges to MRP systems: 1. MRP VS. JIT 2. MRP VS. cellular manufacturing 3. MRP vs. CIM ( computer-integrated- manufacturing)
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Comparing MRP and JIT MRP JIT Based on MPS, BOM, and inventory records MPS, Kanban Objective Plan and control Eliminate waste, continuous improvement
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