Lecture 10 - Materials requirements planning (continued). The contents of this chapter include all of the following: Determining gross requirements, gross requirements plan, MPR structure, determining gross requirement, net requirement plan, MRP and JIT, Lot sizing techniques. | Lecture 10 Materials Requirements Planning (Continued) Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, ., CFPIM, CIRM, Fleming College, Emeritus, Stephen N. Chapman, ., CFPIM, North Carolina State University, Lloyd M. Clive, ., CFPIM, Fleming College Operations Management for Competitive Advantage, 11th Edition, by Chase, Jacobs, and Aquilano, 2005, .: McGraw-Hill/Irwin. Operations Management, 11/E, Jay Heizer, Texas Lutheran University, Barry Render, Graduate School of Business, Rollins College, Prentice Hall Objectives MPR structure Determining Gross Requirement Net requirement plan MRP and JIT Lot sizing techniques MRP Structure Output Reports MRP by period report MRP by date report Planned order report Purchase advice Exception reports Order early or late or not needed Order quantity too small or too large Data Files Purchasing data BOM Lead times (Item master file) Inventory data Master production schedule Material requirement planning | Lecture 10 Materials Requirements Planning (Continued) Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, ., CFPIM, CIRM, Fleming College, Emeritus, Stephen N. Chapman, ., CFPIM, North Carolina State University, Lloyd M. Clive, ., CFPIM, Fleming College Operations Management for Competitive Advantage, 11th Edition, by Chase, Jacobs, and Aquilano, 2005, .: McGraw-Hill/Irwin. Operations Management, 11/E, Jay Heizer, Texas Lutheran University, Barry Render, Graduate School of Business, Rollins College, Prentice Hall Objectives MPR structure Determining Gross Requirement Net requirement plan MRP and JIT Lot sizing techniques MRP Structure Output Reports MRP by period report MRP by date report Planned order report Purchase advice Exception reports Order early or late or not needed Order quantity too small or too large Data Files Purchasing data BOM Lead times (Item master file) Inventory data Master production schedule Material requirement planning programs (computer and software) 3 Determining Gross Requirements Starts with a production schedule for the end item – 50 units of Item A in week 8 Using the lead time for the item, determine the week in which the order should be released – a 1 week lead time means the order for 50 units should be released in week 7 This step is often called “lead time offset” or “time phasing” 4 Determining Gross Requirements From the BOM, every Item A requires 2 Item Bs – 100 Item Bs are required in week 7 to satisfy the order release for Item A The lead time for the Item B is 2 weeks – release an order for 100 units of Item B in week 5 The timing and quantity for component requirements are determined by the order release of the parent(s) 5 Determining Gross Requirements The process continues through the entire BOM one level at a time – often called “explosion” By processing the BOM by level, items with multiple parents are only processed once, saving time and resources and reducing confusion .
