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Dependent Demand Requirements Planning

Dependent Demand Requirements Planning. Module Objectives. Know why requirements planning systems are used Know how MRP, DRP, and CRP systems interact Understand the logic behind requirements planning and be able to compute future inventory needs for a product

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Dependent Demand Requirements Planning

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  1. Dependent Demand Requirements Planning

  2. Module Objectives • Know why requirements planning systems are used • Know how MRP, DRP, and CRP systems interact • Understand the logic behind requirements planning and be able to compute future inventory needs for a product • Be able to read and understand an MRP record (or a DRP record) • Be able to compute the capacity requirements for a plan given a set of MRP records and know how to adjust a plan if capacity is not sufficient in some period

  3. Requirements Planning Systems Materials requirements planning (MRP) Enterprise resource planning (ERP) Distribution requirements planning (DRP)

  4. Material Requirements Planning Master production schedule (MPS) Bill of materials (BOM) Inventory records file

  5. Production Planning System

  6. Stages of MRP • BOM explosion • On-hand inventory netting • Offsetting the lead time

  7. Exploded Schematic - Example

  8. BOM Explosion - Example Set of Knives  Knife (4)  Blade (1)  Rivets (3)  Shape Handle (1)  Wood Block (1)  Gift Box (1)

  9. Exploded Requirements - Example

  10. Inventory Netting - Example

  11. Lead Times - Example

  12. Lead time offsets - Example

  13. Low Level Coding

  14. Inventory Record - Example

  15. Lot-Sizing in MRP Systems • Lot-for-lot • Fixed quantity • Economic order quantity • Period order quantity

  16. Lot-for-Lot Lot Size Rule - Example

  17. EOQ Lot Size Rule - Example

  18. POQ Lot Size Rule - Example

  19. MRP Terminology

  20. Pitfalls using MRP Systems • MRP system trust • Buffers in MRP systems • System nervousness and time fences

  21. Revised Rivet Record - SS

  22. MRP Reaction Time – Example

  23. Distribution Requirements Planning (DRP) DRP gathers and consolidates orders from all of the various distribution points for the central facility. The information is valuable for planning truck capacity and routing, for planning warehouse transactions and labor, and for understanding customer purchasing patterns.

  24. Capacity Requirements Planning The projected needs are based on a desired master production schedule with regard given to needed capacity to build the desired quantities

  25. One Item DRP - Example

  26. CRP Load Profile - Example

  27. Capacity Requirement Planning (CRP)

  28. Eaton Furniture Company Book Shelf 3X3-O1  Cabinet  Back  Oak Sheet (9/32)  Side (2)  Oak Sheet (4/32)  End (2)  Oak Sheet (3/32)  Shelf  Oak Sheet (3/32)  Bracket (4)

  29. Shipping Point Lead time SS Lot Size Inventory On Hand Demand Forecast by Week 1 2 3 4 5 6 7 8 Atlanta 1 10 20 12 9 10 11 11 10 10 10 Dallas 1 10 10 15 10 10 8 8 8 8 8 Eaton 0 0 10 0 30 20 40 20 30 30 Kobe 3 40 40 55 11 12 25 12 12 12 12 12 Monterrey 1 10 20 20 15 13 15 12 15 13 13 Eaton Furniture Company – Demand Forecast

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