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Krajewski Chapter 4

This document contains a material requirements plan (MRP) for seat subassemblies and their components (seat frames and cushions) over an 8 week period. It shows gross requirements, scheduled receipts, projected on-hand inventory, planned receipts, and planned order releases. Planned order releases of 230 units are scheduled for seat subassemblies in weeks 3 and 6 to meet gross requirements. Projected on-hand inventory of seat frames increases to 180 units in week 5 due to a planned receipt of 300 units in that week. Gross requirements for seat frames will be 1200 units in week 3. Projected on-hand inventory of seat cushions remains at zero as planned order releases of 230 units are scheduled for weeks 4

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0% found this document useful (0 votes)
92 views19 pages

Krajewski Chapter 4

This document contains a material requirements plan (MRP) for seat subassemblies and their components (seat frames and cushions) over an 8 week period. It shows gross requirements, scheduled receipts, projected on-hand inventory, planned receipts, and planned order releases. Planned order releases of 230 units are scheduled for seat subassemblies in weeks 3 and 6 to meet gross requirements. Projected on-hand inventory of seat frames increases to 180 units in week 5 due to a planned receipt of 300 units in that week. Gross requirements for seat frames will be 1200 units in week 3. Projected on-hand inventory of seat cushions remains at zero as planned order releases of 230 units are scheduled for weeks 4

Uploaded by

Narendra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Material Requirements Plan LOT SIZE = 230 Units

SEAT SUBASSEMBLY LEAD TIME = 2 Weeks


Weeks 1 2 3 4 5 6 7 8
Gross
GrossReqirements
Requirements 150 120 150 120
Scheduled Receipts 230
Projected on-hand: 37 117 117 117 227 227 77 187 187
Planned Receipts 230 230
Planned order Releases 230 230

LOT SIZE = 300


Seat Frames LEAD TIME = 1 Week
Weeks 1 2 3 4 5 6 7 8
Gross
GrossReqirements
Requirements 230 230
Scheduled Receipts 300
Projected on-hand Inv. = 40 40 110 110 110
Planned Receipts 300
Planned order Releases 300
110
40
Lot40is on-hand
on
of carried
hand
300 inisbe
plus
must inventory
300 untilprevious
in receipts
scheduled
carried from week
to start5production
minus when
plan tomore
demand isweek
ofin230
week needed.
= 110
one. 4 and
LOT SIZE = L4L
arrives as planned receipt in week 5.
Seat Cushions LEAD TIME = 1 week
Weeks 1 2 3 4 5 6 7 8
Gross
GrossReqirements
Requirements 230 230
Scheduled Receipts
Projected on-hand Inv. = 0
Planned Receipts
Planned order Releases
© 2007 Pearson Education
© 2007 Pearson Education
Material Requirements Plan LOT SIZE = 230 Units
SEAT SUBASSEMBLY LEAD TIME = 2 Weeks
Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Gross Requirements 150 120 150 120
Scheduled Receipts 230
Projected on-hand: 37 117 117 117 227 227 77 187 187
Planned Receipts 230 230
Planned order Releases 230 230

LOT SIZE = 300


Seat Frames LEAD TIME = 1 Week
Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Gross Requirements 230 230
Scheduled Receipts 300
Projected on-hand Inv. = 40 40 110 110 110 180 180 180 180
Planned Receipts 300
Planned order Releases 300

The 180 infor


On-Hand inventory
week 5 is 300
carried until- 230
+ 110 the next
= 180gross LOT SIZE = L4L
requirements.
Seat Cushions LEAD TIME = 1 week
Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Gross Requirements 230 230
Scheduled Receipts
Projected on-hand Inv. = 0
Planned Receipts
Planned
© 2007 orderEducation
Pearson Releases
© 2007 Pearson Education
Material Requirements Plan LOT SIZE = 230 Units
SEAT SUBASSEMBLY LEAD TIME = 2 Weeks
Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Gross Requirements 150 120 150 120
Scheduled Receipts 230
Projected on-hand: 37 117 117 117 227 227 77 187 187
Planned Receipts 230 230
Planned order Releases 230 230

LOT SIZE = 300


Seat Frames LEAD TIME = 1 Week
Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Gross Requirements 230 230
Scheduled Receipts 300
Projected on-hand Inv. = 40 40 110 110 110 180 180 180 180
Planned Receipts 300
Planned order Releases 300

Planned
Two order
planned
Projected releases
order
on-hand are sized
releases
inventory of 230tounits
remains gross requirements.
are
at zero.scheduled. LOT SIZE = L4L
Seat Cushions LEAD TIME = 1 week
Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Gross Requirements 230 230
Scheduled Receipts
Projected on-hand Inv. = 0 0 0 0 0 0 0 0 0
Planned Receipts 230 230
Planned
© 2007 orderEducation
Pearson Releases 230 230
© 2007 Pearson Education
Material Requirements Plan LOT SIZE = 230 Units
SEAT SUBASSEMBLY LEAD TIME = 2 Weeks
Weeks 1 2 3 4 5 6 7 8
Gross
GrossReqirements
Requirements 150 120 150 120 0
Scheduled Receipts 230
Projected on-hand: 37 117 117 117 227 227 77 187 187
Planned Receipts 230 230
Planned order Releases 230 230

LOT SIZE = 300


Seat Frames LEAD TIME = 1 Week
Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Gross Requirements 230 230
Scheduled Receipts 300
Projected on-hand Inv. = 40 40 110 110 110 180 180 180 180
Planned Receipts 300
Planned order Releases 300

Gross requirements for seat-frame boards will be 1200 units


LOT(orSIZE
4 x=300)
L4L in
week 3.
Seat Cushions LEAD TIME = 1 week
Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Gross Requirements 230 230
Scheduled Receipts
Projected on-hand Inv. = 0 0 0 0 0 0 0 0 0
Planned Receipts 230 230
Planned
© 2007 order Education
Pearson Releases 230 230
© 2007 Pearson Education
Other
Important Reports
 Action notice: A computer-generated memo
alerting planners about releasing new orders and
adjusting the due dates of scheduled receipts.
 Capacity requirements planning (CRP): A
technique used for projecting time-phased capacity
requirements for workstations; its purpose is to
match the material requirements plan with the
capacity of key processes.
 Manufacturing resource planning (MRP II): A
system that ties the basic MRP system to the
company’s financial system and to other core and
supporting processes.
© 2007 Pearson Education
Item A’s MPS and BOM
Application 15.5

© 2007 Pearson Education


Inventory Data
Application 15.5

© 2007 Pearson Education


Item D
Application 15.5

© 2007 Pearson Education


Item B
Application 15.5

© 2007 Pearson Education


Item C
Application 15.5

© 2007 Pearson Education


Drum-Buffer-Rope System
 Drum-Buffer-Rope (DBR): A planning and control
system that regulates the flow of work-in-process
materials at the bottleneck or the capacity
constrained resource (CCR) in a productive system.

Drum-Buffer-Rope System with a Capacity Constrained Resource (CCR)

Market Demand
650 units/week

© 2007 Pearson Education


Drum-Buffer-Rope System
in Practice
 The U.S. Marine Corps Maintenance Center in
Albany, Georgia, overhauls and repairs vehicles
used by the Corps.
 Repairs to equipment can vary tremendously at the
U.S. Marine Corps Maintenance Center in Albany,
Georgia.
 The center struggled to keep up with its repairs until
managers implemented the simplified form of a
drum-buffer-rope system.
 The result? Repair times fell from 167 days to just
58 days, on average.
© 2007 Pearson Education
Resource Planning for
Service Providers

 Dependent demand for services


Restaurant
Airlines
Hospitals
Hotels
 Bill of Resources: A record of a firm’s
parent-component relationships and all of
the materials, equipment time, staff, and
other resources.
© 2007 Pearson Education
Level 1
Discharge

Bill of Resources (BOR)


Level 2
A record of a service firm’s parent– Intermediate care

component relationships and all of the


materials, equipment time, staff, and Level 3
Postoperative care
other resources associated with them, (Step down)

including usage quantities.


Level 4
Postoperative care
(Intensive)

BOR for Treating an Level 5


Aneurysm Surgery

Level 6
Preoperative care Level 6
(Angiogram) Preoperative care
(Angiogram)

Level 7
Preoperative care
Pharmacy (Testing)
Nurse MD Therapy Bed Lab Kitchen
(10
(6 hr) (1 hr) (1 hr) (24 hr) (3 tests) (1 meal)
medicines)

© 2007 Pearson Education


© 2007 Pearson Education
Solved Problem 1

If there is no existing
A
inventory, how many
LT = 1 units of items G, E, and
D must be purchased to
produce five units of end
B (3) C (1) item A?
LT = 2 LT = 3

D (1) E (2) F (1) D (1)

LT = 3 LT = 6 LT = 1 LT = 3
5 units of item
G (1) G
LT = Lead time
LT = 3 30 units of item E
© 2007 Pearson Education
20 units of item D
Solved Problem 3

A
The MPS for product A calls for the assembly
department to begin final assembly according LT = 2
to the following schedule: 100 units in week 2;
200 units in week 4; 120 units in week 6; 180
units in week 7; and 60 units in week 8. B (1) C (2)
Develop a material requirements plan for the
next eight weeks for items B, C, and D.
LT = 1 LT = 2
ITEM
DATA CATEGORY B C D D (1)
Lot-sizing rule POQ (P=3) L4L FOQ = 500 units
Lead time 1 week 2 weeks 3 weeks LT = 3
Scheduled receipts None 200 (week 1) None
Beginning (on-hand) 20 0 425
inventory

© 2007 Pearson Education


Solved Problem 3
Item: B Lot size: POQ (P = 3)
Description: Lead time: 1 week
Week

1 2 3 4 5 6 7 8 9 10

Gross
100 200 120 180 60
requirements

Scheduled
receipts
Projected
on-hand 20 20 200 200 0 0 240 60 0 0 0
inventory
Planned 280 360
receipts
Planned
order 280 360
releases
© 2007 Pearson Education
© 2007 Pearson Education
Solved Problem 3
Item: C Lot size: L4L
Description: Lead time: 2 weeks
Week

1 2 3 4 5 6 7 8 9 10

Gross
200 400 240 360 120
requirements

Scheduled
200
receipts
Projected
on-hand 0 200 0 0 0 0 0 0 0 0 0
inventory
Planned 400 240 360 120
receipts
Planned
order 400 240 360 120
releases
© 2007 Pearson Education
© 2007 Pearson Education
Solved Problem 3
Item: D Lot size: FOQ = 500 units
Description: Lead time: 3 weeks
Week

1 2 3 4 5 6 7 8 9 10

Gross
400 240 360 120
requirements

Scheduled
receipts
Projected
on-hand 425 425 25 25 285 425 305 305 305 360 305
inventory
Planned 500 500
receipts
Planned
order 500 500
releases
© 2007 Pearson Education
© 2007 Pearson Education

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