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Chapter 15a

Chapter 15a. Resource Requirements Planning: MRP and CRP. Market Research. R&D. Estimated End Item Demands. Branch Warehouses. Forecast Customer Demand. Customer Orders. Needed Production of End Items. Inventory Status of End Items. Lot-Sizing and Safety Stock Policies.

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Chapter 15a

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  1. Chapter 15a Resource Requirements Planning: MRP and CRP

  2. Market Research R&D Estimated End Item Demands Branch Warehouses Forecast Customer Demand Customer Orders Needed Production of End Items Inventory Status of End Items Lot-Sizing and Safety Stock Policies Rough-Cut Capacity Planning Trial Master Production Schedule (MPS) Modifi- cations to MPS Modifi- cations to MPS Material Requirements Planning (MRP) Capacity Requirements Planning (CRP) Capacity Economically Available? No Materials Available? Yes Yes No Master Production Schedule (MSP) Material Requirements Plan Capacity Requirements Plan Purchasing Planning and Control Shop floor Scheduling and Control Resource Requirements Planning Systems *15

  3. A 3B 4C 2D MRP Example 1 Week 150 200 200 100 100 0 0 200 100 200 200 100 200 200 100 200 600 300 600 250 250 250 250 50 150 0 350 250 450 400 400 450 400 400 450 800 400 800 100 100 100 100 0 0 0 700 400 800 700 400 800 700 400 800 800 800 900 0 0 200 400 500 500 500 800 600 500 1000 1000 1000 1000 1000 1000

  4. A 3B 5C 2C 3D Note: Aside from the end item, customers have also ordered 100 units of part B in week 5 and 200 units in week 6 as spares. MRP Example 2 Week 400 400 0 0 0 0 100 800 900 1300 100 800 900 1300 100 800 900 1300 +100 +200 300 2400 2700 4000 200 1800 3500 1100 1100 500 0 1600 3500 200 2100 3500 700 2100 3500 700 5(800) + 2(2100) 500 8200 7000 5900 6500 1700 1200 3000 6000 100 3600 7000 4000 6400 10,000 10,000 10,000 10,000 10,000 10,000 6300 10,500 2100 100 5100 3800 0 2900 2900 1200 6700 2100 5000 * 6700 5000 6700 5000 Rush 5000 *

  5. MRP Example 2Planned Order Release Schedule Week Item **RUSH** 1 2 3 4 5 6 A 100 800 900 1300 B 2100 3500 700 C 10,000 10,000 10,000 D 5000 6700 5000

  6. TRIAL MASTER PRODUCTION SCHEDULE Change MPS, Reschedule Orders to Level Load MRP SCHEDULES Planned Order Releases for All Materials NO Determine Routing for All Orders, Work Center Assignments Can Routing Be Changed to Improve Capacity? YES Convert Lots of Materials into Labor and/or Machine Load at Work Centers Labor and/or Machine Load Schedules NO Can Capacity Be Economically Changed? Is Capacity Available? NO YES YES Plan Overtime, Standby Machines, Subcontracting, etc. Routing Plans, Overtime and Subcontracting Plans Firm Up the MPS The Capacity Requirements Planning Process Start *15

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