In this chapter, the following content will be discussed: ABC controls, ABC analysis, records accuracy, cycle counting, independent vs. dependent demand, managing inventory in the face of uncertainity. | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 22 1 Summary of last Session Chapter: Aggregate Planning Case Study Frito Lays Methods for Aggregate Planning Graphical Methods Mathematical Approaches Comparison of Aggregate Planning Methods 2 2 Summary of last Session (Contd.) Aggregate Planning in Services Restaurants Hospitals National Chains of Small Service Firms Miscellaneous Services Airline Industry Yield Management 3 3 Agenda for this Session CHAPTER : MATERIAL REQUIREMENT PLANNING Global Company Profile: Wheeled Coach Dependent Demand Dependent Inventory Model Requirements Master Production Schedule Bills of Material Accurate Inventory Records Purchase Orders Outstanding Lead Times for Components 4 4 Agenda for this Session (Contd.) MRP Structure MRP Management MRP Dynamics MRP and JIT 5 5 CHAPTER : MATERIAL REQUIREMENT PLANNING 6 Wheeled Coach Largest manufacturer of ambulances in the world International competitor 12 major ambulance designs 18,000 . | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 22 1 Summary of last Session Chapter: Aggregate Planning Case Study Frito Lays Methods for Aggregate Planning Graphical Methods Mathematical Approaches Comparison of Aggregate Planning Methods 2 2 Summary of last Session (Contd.) Aggregate Planning in Services Restaurants Hospitals National Chains of Small Service Firms Miscellaneous Services Airline Industry Yield Management 3 3 Agenda for this Session CHAPTER : MATERIAL REQUIREMENT PLANNING Global Company Profile: Wheeled Coach Dependent Demand Dependent Inventory Model Requirements Master Production Schedule Bills of Material Accurate Inventory Records Purchase Orders Outstanding Lead Times for Components 4 4 Agenda for this Session (Contd.) MRP Structure MRP Management MRP Dynamics MRP and JIT 5 5 CHAPTER : MATERIAL REQUIREMENT PLANNING 6 Wheeled Coach Largest manufacturer of ambulances in the world International competitor 12 major ambulance designs 18,000 different inventory items 6,000 manufactured parts 12,000 purchased parts 7 7 Wheeled Coach Four Key Tasks Material plan must meet both the requirements of the master schedule and the capabilities of the production facility Plan must be executed as designed Minimize inventory investment Maintain excellent record integrity 8 8 Benefits of MRP Better response to customer orders Faster response to market changes Improved utilization of facilities and labor Reduced inventory levels 9 9 Dependent Demand The demand for one item is related to the demand for another item Given a quantity for the end item, the demand for all parts and components can be calculated In general, used whenever a schedule can be established for an item MRP is the common technique 10 10 Dependent Demand Master production schedule Specifications or bill of material Inventory availability Purchase orders outstanding Lead times Effective use of dependent demand inventory models requires the following 11 11 Master Production .
