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Session 10 Material Requirements Planning http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm lecture session 10

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Session 10 Material Requirements Planning http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm lecture session 10 Material Requirements Planning: Role in the ... – PowerPoint PPT presentation

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Title: Session 10 Material Requirements Planning http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm lecture session 10


1
Session 10Material Requirements
Planninghttp//www.pom.edu/mpc/lectures_in_manufa
cturing_planning.htmlecture session 10
  • Material Requirements Planning Role in the MPC
    System
  • Evolution in Material Planning
  • Basic MRP of Record Processing
  • Information Timing
  • Technical Issues

2
Manufacturing Planning and Control System
3
Evolution in Material Planning
  • Independent vs. Dependent Demand Items
  • MRP
  • Closed loop MRP systems
  • MRP II (Manufacturing Resource Planning)
  • ERP

4
Basic MRP Records and Record Processing Example
  • Develop an MRP spreadsheet record for six
    periods using the following parameters for the
    item
  • Period 1 2 3 4 5 6
  • Gross requirements 20 20 20 30 30 30
  • Lead time 1 period
  • Lot size 40 units
  • Safety stock 0 units
  • Inventory 2 units
  • Scheduled receipt 40 units in period 1

5
Basic MRP Records and Record Processing Example
(Continued)
  1. In what periods are there planned order releases?
  2. What happens to the timing, number of planned
    order releases, and average inventory (for
    periods l through 6) if 10 units of safety stock
    are required?
  3. What happens to the timing, number of planned
    order releases, and average inventory (for
    periods 1 through 6) if a one-period safety lead
    time is used instead of the safety stock?

6
Basic MRP Records and Record Processing
  • No safety stock
  • Three planned orders in periods 2, 3, and 5.
    Average projected inventory is 15.33 units.

7
Information Timing
  • Gross Requirements - Beginning of Period
  • Scheduled Receipts - Beginning of Period
  • Projected Available Balance - End of Period
  • Planned Order Release - Beginning of Period

8
Basic MRP Records and Record Processing
(Continued)
  • Safety stock of 10 units
  • Q 40, LT 1, SS 10
  • Three planned orders in periods 1, 3, and 4. Two
    planned orders were moved up because of the
    safety stock requirement. Average projected
    inventory is 28.67 units.

9
Basic MRP Records and Record Processing
  • No safety stock
  • Three planned orders in periods 2, 3, and 5.
    Average projected inventory is 15.33 units.

10
Basic MRP Records and Record Processing
(Continued)
  • Safety Lead Time of 1 period
  • Three planned orders in periods 1, 2, and 4. All
    of the planned orders were moved up by 1 period
    to account for the safety lead time. Average
    projected inventory is 35.33 units.
  • Using safety stocks or safety lead time causes
    the system to hold more inventory and order
    earlier. The safety lead time causes all orders
    to be held an extra period in inventory

11
Technical Issues
  • Net Requirements
  • Lot Sizing
  • Lot-For-Lot (L4L)
  • Fixed Order Quantities (Q)
  • Safety Stock and Safety Lead Time
  • Incorporating Service Part Demand
  • Scheduled Receipts versus Planned Order Releases
  • Firm Planned Orders
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