Professional Documents
Culture Documents
Planning (MRP)
and ERP 14
PowerPoint presentation to accompany
Heizer and Render
Operations Management, Eleventh Edition
Principles of Operations Management, Ninth Edition
2014
2014
Pearson
Pearson
Education,
Education,
Inc.Inc. 14 - 1
Dependent Demand
Benefits of MRP
1. Better response to customer orders
2. Faster response to market changes
3. Improved utilization of facilities and
labor
4. Reduced inventory levels
Figure 14.1
2014 Pearson Education, Inc. 14 - 8
The Planning Process
Production Marketing
Finance
Capacity Customer
Cash flow
Inventory demand
Master production
schedule
Figure 14.1
2014 Pearson Education, Inc. 14 - 9
The Planning Process
Master production
schedule
Change
master
production
schedule?
Material
requirements plan
Schedule and
execute plan
Figure 14.1
2014 Pearson Education, Inc. 14 - 10
Aggregate
Production Plan Figure 14.2
1 B(2) C(3)
1 2 3 4 5 6 7 8
Time in weeks
2014 Pearson Education, Inc. 14 - 17
MRP Structure Figure 14.4
MRP by
BOM period report
Master
production schedule
MRP by
date report
Lead times
(Item master file) Planned order
report
Inventory data
Purchase advice
Material
requirement
planning
programs
(computer and Exception reports
Purchasing data software)
Order early or late
or not needed
MRP II
Closed-Loop MRP
Capacity Planning
Aggregate Plan
OK?
NO Priority Management Capacity Management
Day 1 2 3 4 5
Orders 10 14 13 10 14
Grated
Smoked Blue Cooked Mac &
Buffalo Pepper Chopped
Pulled Cheese Elbow Cheese Milk
Sauce Jack Scallions
Chicken Crumbles Macaroni Base
Cheese