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Dependent demand lumpy

MASTER SCHEDULE FOR END ITEMS. MRP. DETAILED SCHEDULE FOR RAW MATERIALS & COMPONENTS USED IN THE END PRODUCTS. Dependent demand lumpy. Avg. rate of demand. Inv. LEVEL. TIME. Inv. LEVEL. t 1. t 2. t 3. t 4. t 5. t 6. TIME. Ordering Lead Time: (for purchased parts).

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Dependent demand lumpy

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  1. MASTER SCHEDULE FOR END ITEMS MRP DETAILED SCHEDULE FOR RAW MATERIALS & COMPONENTS USED IN THE END PRODUCTS • Dependent demand • lumpy

  2. Avg. rate of demand Inv. LEVEL TIME Inv. LEVEL t1 t2 t3 t4 t5 t6 TIME

  3. Ordering Lead Time: (for purchased parts) Initiation of purchase requisition Receipt of item from vendor (off shelf / fabricate) Manufacturing Lead Time: Process part through sequence of machines as given on route sheet (operation + non-productive times) Place order Item delivered

  4. BASIC RAW MATERIAL C1 C2 C3 Cn P1 P2 P3 PN COMPONENTS PRODUCTS

  5. Master Production schedule Engg. changes Inventory transactions Inventory Record file Bill of Materials file MRP PROCESSOR OUT PUT REPORTS Service Parts requirements Customer orders Sales forecasts … Capacity vs Load report Shop floor Planning report Gross & Net requirements report Production Order Status & exceptions report

  6. Firms customer orders Forecasted demand Demand for individual component Parts (for repair and service) DEMAND Often excluded from MPS, since it does not include end product demand.

  7. C1 C2 C3 C4 C5 C6 S1 S2 P1 (1) (2) (1) (4) (1) (2) (2) (1) Level 0 (product) Level 1 (sub-assemblies) Level 2 (raw materials)

  8. Ordering Lead time Purchasing records Process Route sheets Manufacturing Lead time

  9. PERIOD 1 2 3 4 5 6 ITEM RAW MATERIAL M4 GROSS REQUIREMENTS SCHEDULED RECEIPTS 40 50 ON HAND 90 NET REQUIREMENTS PLANNED ORDER RELEASES P2 P1 S4 S3 S2 S1 (1) (1) (1) (2) C7 C4 C6 C2 C8 C1 C2 C3 C4 C5 C6 (2) (1) (4) (2) (1) (1) (4) (1) (2) (2) (1) M4 PRODUCT STRUCTURE FOR PRODUCTS P1 & P2 Initial inventory status for M4 Lead times (in weeks)

  10. AN IMPROVED ORDERING METHOD  PRIORITY PLANNING  CLOSED LOOP MRP  MRP II EVOLUTION OF MRP Improved computational efficiency of computers Unrealistic M/c schedules, ignoring plant capacities Not only plans priorities but provides feedback to executing the priority plan • (Links functions • Capacity planning • Inventory management • Shop floor control • MRP) Manufacturing Resource Planning • Links up the closed loop MRP system with the financial systems of the company

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