RESOURCE PLANNING

Course Instructor: Dr. Swati Singh Course: MBA- II

Amity Business School

Dr. Swati Singh

This is a sub-set of APP which makes use of actual customers orders for the purpose of capacity planning & resource allocation It is a function of independent demand i.e. of customers & specifies exactly what is to be produced It determines production schedule for individual product i.e. it specifies how many end items are to be produced within specified period (week, months, quarter) of short-range planning horizon It includes all demands from product sales, warehouse replenishment, spares & inter-plant requirements It determines actual material requirement for production Material

Master Production Schedule Determines Requirement plan Determines

Dr. Swati Singh

Capacity Planning

Master Production Schedule

Finished Goods Stock
Plant Production Capacity Finished Goods Demanded

Aggregate Production Planning

Purchase Orders to arrive

Plant Work Force

Master Production Schedule

Material Requirements Planning

Raw Material Stock

Raw Material Purchase Orders

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It is done for dependent demand inventory & also schedule production activities Its key inputs are:

End product requirements product structure data Lead-time Inventory Status

It is most useful for complex products, job shops & assemble-to-order system It is done through Bills of Materials It helps in ensuring availability of materials at the right time & at the right place
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It contains list of materials along with quantity required to produce one unit of product
Its structure consists of all end products i.e. subassemblies, parts, raw materials etc.

Dr. Swati Singh

B (1) Ladder back subassembly

C (1) Seat Subassembly

D (2) Front Legs

E (4) Leg supports

F (2) Back Legs

G (4) Back Slats

H (1) Seat Frame

I (1) Seat Cushion

J (4) Seat frame boards

Dr. Swati Singh

B (3)

C (1)

D (2)

E (1)

F (3)

H (2)

I (2)

J (1)

F (4)

G (2)

F (1)

G (3)

G = (2*1*3*10) + (3*2*1*10) = 60+60 = 120 F = (3*3*10) + (1*2*1*10) + (4*2*10) = 190 J = 20 Dr. Swati Singh H = 20

A LT=1

B (3) LT=2

C (2) LT=1

D (2) LT=2

Dr. Swati Singh

Work No.

Weeks

1
Item: A Quantity = 1 LT = 1 Gross Requirement Quantity on hand Net Requirement Planned order Receipts Planned order Releases Gross Requirement Quantity on hand Net Requirement Planned order Receipts Planned order Releases Gross Requirement Quantity on hand Net Requirement Planned order Receipts Planned order Releases Gross Requirement Quantity on hand Net Requirement Planned order Receipts Planned order Releases

6
100 0 100 100

100 300 100 200 200 200 200 0 200 200 200 400 0 400 400 400
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Item: B Quantity = 3 LT = 2

Item: C Quantity = 2 LT = 1

Item: D Quantity = 2 LT = 2

It is an enlarged version of MRP It ties the basic MRP system to companys financial system and to other core & supporting processes MRP II ultimately evolves into Enterprise Resource Planning (ERP) It consists of: Business Planning Forecasting/Demand Management Purchasing Inventory control Master Production Schedule (MPS) Material Requirement Planning (MRP)

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