Professional Documents
Culture Documents
Materials
- are the physical items used during the production process
- include not only the parts and raw materials that become the
finished goods, but also the physical items needed to support
the production process such as:
fuels, lubricants, tools, n\machinery, forms and anything else
that is purchased, moved, stored or shipped
Materials Management
- concerned with purchasing, storage and movement of
materials during production and with distribution of finished
goods.
Benefits of MRP
1. Better response to customer orders as the result of improved
adherence to schedules (wins orders and market share).
3. Inventory Availability
What is in the stock?
5. Lead Times
How long it takes to get various components?
MRP Inputs
MRP has three major sources of information:
Level Product X
1 B(2) C
3 E(4)
Determine the:
Solution:
Note:
E appears in three separate places. Its total requirements can be
determine by summing up the separate amounts, which yields 28
(24 + 2 + 2).
Modular Bills
- bills of materials organized by major subassemblies or by
product options.
Example:
A firm may make 138,000 different final products but have only 40
modules that are mixed and matched to produce those 138,000
final products.
Planning Bills
- are created in order to assign an artificial parent to the bill of
materials.
Low-Level Coding
- low-level coding of an item in BOM is necessary when identical
items exist at various levels in the BOM.
If the firm has not yet achieved at least 99% record accuracy,
then material requirements planning (MRP) will not work.