Beni AsllaniUniversity of Tennessee at Chattanooga.pptVIP

Resource Planning Beni AsllaniUniversity of Tennessee at Chattanooga Lecture Outline Material Requirements Planning (MRP) Capacity Requirements Planning (CRP) Enterprise Resource Planning (ERP) Customer Relationship Management (CRM) Supply Chain Management (SCM) Collaborative Product Commerce (CPC) Material RequirementsPlanning (MRP) Computerized inventory control and production planning system When to use MRP? Dependent demand items Discrete demand items Complex products Job shop production Assemble-to-order environments Demand Characteristics Material Requirements Planning MRP Inputs and Outputs Inputs Master production schedule Product structure file Item master file Outputs Planned order releases Work orders Purchase orders Rescheduling notices Master Production Schedule Drives MRP process with a schedule of finished products Quantities represent production not demand Quantities may consist of a combination of customer orders and demand forecasts Quantities represent what needs to be produced, not what can be produced Quantities represent end items that may or may not be finished products Product Structure Product Structure Tree Intended BOM List Specialized BOMs Phantom bills Transient subassemblies Never stocked Immediately consumed in next stage K-bills Group small, loose parts under pseudo-item number Reduces paperwork Specialized BOMs (cont.) Modular bills Product assembled from major subassemblies and customer options Modular bill kept for each major subassembly Simplifies forecasting and planning X10 automobile example 3 x 8 x 3 x 8 x 4 = 2,304 configurations 3 + 8 + 3 + 8 + 4 = 26 modular bills Time-phased bills an assembly chart shown against a time scale Modular BOMs Time-phased Bills MRP: Example MRP: Example (cont.) Lot Sizing in MRP Systems Lot-for-lot ordering policy Fixed-size lot ordering policy Minimum order quantities Maximum order quantities Multiple order quantities Economic order quantity Periodic order quantity Advanced Lot Sizing Rule