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Chapter 12

Chapter 12. Resource Requirements Planning: MRP and CRP. Inventory Transactions Data. Inventory Status File. Changes to Planned Orders. Master Production Schedule. Primary. MRP System. Planned Order Schedule. Outputs. Performance Reports. Secondary. Outputs. Bills of

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Chapter 12

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  1. Chapter 12 Resource Requirements Planning: MRP and CRP

  2. Inventory Transactions Data Inventory Status File Changes to Planned Orders Master Production Schedule Primary MRP System Planned Order Schedule Outputs Performance Reports Secondary Outputs Bills of Material File Planning Reports Exception Reports MRP Outputs MRP Computer Program MRP Inputs Overview of MRP

  3. Inventory Status File 1 record for each part number Each record may contain the following information • part number • description • supplier(s) • # units on hand • safety stock • order quantity • lead time • # units already allocated (reserved, ear-marked) • open orders • # units • receive date • other information

  4. A 3C D 2B 2F H 3E 2D 4G 3J 2E 2F Product Structure Tree (A product structure tree is one way to display the information from a bill of material.) 1. How many of each part are needed to make one end item A? 2. If the warehouse has 2000 E’s, 800 F’s, 220 H’s, and 2500 J’s, then how many units of A can be produced?

  5. At 8:00 in the morning an important customer places an order for as many units of item A as you can deliver by 5:00 that afternoon, and offers to pay a 30% premium for the item since this is a rush job. Subcomponents can be assembled very quickly if all of the lower level components are on hand. The lowest level materials are ordered from suppliers and it is not possible to place and receive an order from the suppliers on such short notice. So any units shipped must be produced with inventory you have on hand. The indented bill of materials for item A is shown below. Inventory records show the quantity in the warehouse for all relevant items. How many units of item A can be shipped by 5:00?

  6. Indented Bill of MaterialsInventory on Hand Level: 0 1 2 3ItemQuantity A A 45 B(2) B 150 D(3) C 20 E(5) D 700 F(3) E 200 G F 1200 C(4) G 100 F(2) H 1100 D(2) H(3)

  7. A 2B 4C 3D 5E G 2F 2D 3H 3F (1st page) Iterations Total # of A’s:

  8. A 2B 4C 3D 5E G 2F 2D 3H 3F (2nd page) Iterations Total # of A’s:

  9. A 2B 4C 3D 5E G 2F 2D 3H 3F (3rd page) Iterations Total # of A’s:

  10. A 4B 3C 2F D 2E 3E The product structure tree for end item A is shown below. The following quantity of each item is available in inventory: A—20, B—40, C—0, D—30, E—180, F—120. Assembly of an item can be done quickly if all necessary materials are available. If there is no time to order any additional materials, what is the maximum number of end item A’s that can be produced and shipped from materials on hand? Answer: 35 A’s

  11. Order Quantity Restrictions(lot size rules) LFL – lot-for-lot Q – specified order quantity (multiples) 400+ – minimum order quantity

  12. MRP Table

  13. Evolution of MRP MRP – Material Requirements Planning MRP II– Manufacturing Resource Planning ERP – Enterprise Resource Planning ????

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