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Chapter 12a

Chapter 12a. Resource Requirements Planning: MRP and CRP. Market Research. R&D. Estimated End Item Demands. Branch Warehouses. Forecast Customer Demand. Customer Orders. Needed Production of End Items. Inventory Status of End Items. Lot-Sizing and Safety Stock Policies.

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Chapter 12a

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  1. Chapter 12a Resource Requirements Planning: MRP and CRP

  2. Market Research R&D Estimated End Item Demands Branch Warehouses Forecast Customer Demand Customer Orders Needed Production of End Items Inventory Status of End Items Lot-Sizing and Safety Stock Policies Rough-Cut Capacity Planning Trial Master Production Schedule (MPS) Modifi- cations to MPS Modifi- cations to MPS Material Requirements Planning (MRP) Capacity Requirements Planning (CRP) Capacity Economically Available? No Materials Available? Yes Yes No Master Production Schedule (MSP) Material Requirements Plan Capacity Requirements Plan Purchasing Planning and Control Shop floor Scheduling and Control Resource Requirements Planning Systems

  3. A 3B 4C 2D MRP Example 1 Week

  4. A 3B 5C 2C 3D Note: Aside from the end item, customers have also ordered 100 units of part B in week 5 and 200 units in week 6 as spares. MRP Example 2 Week

  5. MRP Example 2Planned Order Release Schedule Week Item **RUSH** 1 2 3 4 5 6 A B C D

  6. TRIAL MASTER PRODUCTION SCHEDULE Change MPS, Reschedule Orders to Level Load MRP SCHEDULES Planned Order Releases for All Materials NO Determine Routing for All Orders, Work Center Assignments Can Routing Be Changed to Improve Capacity? YES Convert Lots of Materials into Labor and/or Machine Load at Work Centers Labor and/or Machine Load Schedules NO Can Capacity Be Economically Changed? Is Capacity Available? NO YES YES Plan Overtime, Standby Machines, Subcontracting, etc. Routing Plans, Overtime and Subcontracting Plans Firm Up the MPS The Capacity Requirements Planning Process Start

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