Professional Documents
Culture Documents
Operations Management
William J. Stevenson
8th edition
11-2 MRP and ERP
MRP
A Dependent Demand
B(4) C(2)
Dependant Demand
Demand
Demand
“Lumpy” demand
Stable demand
Time Time
Amount on hand
Amount on hand
Safety stock
Time Time
11-6 MRP and ERP
Figure 11.2
MRP Inputs MRP Processing MRP Outputs
Changes
Order releases
Master
schedule Planned-order
schedules
Primary
reports Exception reports
Bill of Planning reports
materials MRP computer Secondary
Performance-
programs reports control
reports
Inventory
records Inventory
transaction
11-7 MRP and ERP
MPR Inputs
r e
c tu
t ru
S
u ct
rod e s
P ee T im
Tr ea d
L
11-8 MRP and ERP
Master Schedule
Planning Horizon
Figure 11.4
Assembly
Subassembly
Fabrication
Procurement
1 2 3 4 5 6 7 8 9 10
11-10 MRP and ERP
Bill-of-Materials
Level Chair
0
1 Leg Back
Assembly Seat Assembly
3
11-12 MRP and ERP
Inventory Records
Procurement of
part H
Subassembly B
Procurement of Fabrication
raw material I of part G
1 2 3 4 5 6 7 8 9 10 11
11-14 MRP and ERP
MRP Processing
• Gross requirements
• Schedule receipts
• Projected on hand
• Net requirements
• Planned-order receipts
• Planned-order releases
11-15 MRP and ERP
MPR Processing
• Gross requirements
• Total expected demand
• Scheduled receipts
• Open orders scheduled to arrive
• Planned on hand
• Expected inventory on hand at the
beginning of each time period
11-16 MRP and ERP
MPR Processing
• Net requirements
• Actual amount needed in each time period
• Planned-order receipts
• Quantity expected to received at the
beginning of the period
• Offset by lead time
• Planned-order releases
• Planned amount to order in each time period
11-17 MRP and ERP
• Regenerative system
• Updates MRP records periodically
• Net-change system
• Updates MPR records continuously
11-18 MRP and ERP
MRP Outputs
• Performance-control reports
• Planning reports
• Exception reports
11-20 MRP and ERP
Other Considerations
• Safety Stock
• Lot sizing
• Lot-for-lot ordering
• Economic order quantity
• Fixed-period ordering
11-21 MRP and ERP
MRP in Services
Benefits of MRP
Requirements of MRP
MRP II
MRP II
Figure 11.14
Market Master
Finance Manufacturing production schedule
Demand
Rough-cut Capacity
capacity planning planning
Adjust
production plan
Yes No Requirements No Yes
Problems? schedules Problems?
11-26 MRP and ERP
Capacity Planning
Capacity Planning
Figure 11.15
ERP
• Future upgrades
• Training