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Product Structure Tree

Product Structure Tree. Chair. Leg Assembly. Back Assembly. Seat. Cross bar. Side Rails (2). Cross bar. Back Supports (3). Legs (2). Level 0. 1. 2. 3. Product Explosion (assume there is no inventory). Chair. Leg Assembly. Back Assembly. Seat. Cross bar. Side

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Product Structure Tree

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  1. Product Structure Tree Chair Leg Assembly Back Assembly Seat Cross bar Side Rails (2) Cross bar Back Supports (3) Legs (2) Level 0 1 2 3

  2. Product Explosion(assume there is no inventory) Chair Leg Assembly Back Assembly Seat Cross bar Side Rails (2) Cross bar Back Supports (3) Legs (2) Level 0 100 1 2 3

  3. Product Explosion(assume there is no inventory) Chair Leg Assembly Back Assembly Seat Cross bar Side Rails (2) Cross bar Back Supports (3) Legs (2) Level 0 100 1 100 100 100 2 3

  4. Product Explosion(assume there is no inventory) Chair Leg Assembly Back Assembly Seat Cross bar Side Rails (2) Cross bar Back Supports (3) Legs (2) Level 0 100 1 100 100 100 2 200 100 100 200 300 3

  5. MRP Logic Item 1 2 3 4 5 Gross requirements Scheduled receipts Available inventory Net requirements Planned-order receipts Planned-order releases 10 15 20 12 5 The MPS is converted into the gross requirements for each component for each time period (time bucket) in the planning horizon using the bill of materials.

  6. Item 1 2 3 4 5 Gross requirements Scheduled receipts Available inventory Net requirements Planned-order receipts Planned-order releases 10 15 20 12 5 7 9 The scheduled receipts are orders that have been placed and are on the way. It is assumed that receipts arrive and are available at the beginning of a time period.

  7. Item 1 2 3 4 5 Gross requirements Scheduled receipts Available inventory Net requirements Planned-order receipts Planned-order releases 10 15 20 12 5 7 9 23 The initial inventory is added to period 1’s scheduled receipts and placed in period 1 of the Available inventory line. In this case, assume that the initial inventory is 16. Add period 1’s scheduled receipt (7) and initial inventory (16) to obtain the projected on handamount for period 1 (23).

  8. Item 1 2 3 4 5 Gross requirements Scheduled receipts Available inventory Net requirements Planned-order receipts Planned-order releases 10 15 20 12 5 7 9 23 -13 Subtract the projected on handamount for period 1 (23) from period 1’s gross requirement (10) to find the net requirement (-13).

  9. Item 1 2 3 4 5 Gross requirements Scheduled receipts Available inventory Net requirements Planned-order receipts Planned-order releases 10 15 20 12 5 7 9 23 22 -13 If the net requirement is negative or zero, that amount (13) is added to the period 2’s scheduled receipt (9) to find the period 2’s projected on hand amount (22).

  10. Item 1 2 3 4 5 Gross requirements Scheduled receipts Available inventory Net requirements Planned-order receipts Planned-order releases 10 15 20 12 5 7 9 23 22 -13 -7 Subtract the projected on handamount for period 2 (22) from period 2’s gross requirement (15) to find the net requirement(-7).

  11. Item 1 2 3 4 5 Gross requirements Scheduled receipts Available inventory Net requirements Planned-order receipts Planned-order releases 10 15 20 12 5 7 9 23 22 7 -13 -7 If the net requirement is negative or zero, that amount (7) is added to the period 3’s scheduled receipt (0) to find the period 3’s projected on hand amount (7).

  12. Item 1 2 3 4 5 Gross requirements Scheduled receipts Available inventory Net requirements Planned-order receipts Planned-order releases 10 15 20 12 5 7 9 23 22 7 -13 -7 13 Subtract the projected on handamount for period 3 (7) from period 3’s gross requirement (20) to find the net requirement (13). If the net requirement is positive, an order receipt must be planned to cover that amount.

  13. Item 1 2 3 4 5 Gross requirements Scheduled receipts Available inventory Net requirements Planned-order receipts Planned-order releases 10 15 20 12 5 7 9 23 22 7 -13 -7 13 13 If lot-for-lot lot sizing is being used, the planned order receipt is equal to period 3’s net requirement.

  14. Item 1 2 3 4 5 Gross requirements Scheduled receipts Available inventory Net requirements Planned-order receipts Planned-order releases 10 15 20 12 5 7 9 23 22 7 -13 -7 13 13 13 The planned order receipt is then offset (moved forward in time) to allow for the lead time. This is the planned order release.

  15. Item 1 2 3 4 5 Gross requirements Scheduled receipts Available inventory Net requirements Planned-order receipts Planned-order releases 10 15 20 12 5 7 9 23 22 7 -13 -7 13 12 13 12 13 12 Repeat the steps for period 4.

  16. Item 1 2 3 4 5 Gross requirements Scheduled receipts Available inventory Net requirements Planned-order receipts Planned-order releases 10 15 20 12 5 7 9 23 22 7 -13 -7 13 12 5 13 12 5 13 12 5 Repeat the steps for period 5

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