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MRP and Related Concepts: TLA (Three Letter Acronym) Definitions
MRP and Related Concepts: TLA (Three Letter Acronym) Definitions
Master Scheduling I
Controls the timing and quantity of production
for products or product families
Primary interface point for actual customer
orders
Coordinates forecasted demand and actual
orders with production activity
Serves as tool for agreement between
marketing and operations (but at a different
level than SOP)
3
Master Scheduling II
Feeds more detailed material planning
Indicates the quantity and timing (i.e., delivery
times) for a product or group of products
More detailed than SOP
weekly versus monthly
specific products versus average
must satisfy the needs of marketing
must be feasible for operations
4
January
200
February
300
March
400
January (weeks)
Push Mowers
Self-propelled
Riding
25
25
35
25
25
40
12
13
SOP
MPS
5
MPS Formulas:
EI t EI t 1 MPSt max(Ft , OBt )
z 1
100
November
December
45
46
47
48
49
50
51
52
Forecast Demand
150
150
150
150
125
125
125
125
Orders Booked
170
165
140
120
85
45
20
Master Schedule
300
300
250
250
Notes:
Planning time fence cumulative lead time for product
What seems to be the lot-sizing rule here?
8
100
November
December
45
46
47
48
49
50
51
52
Forecast Demand
150
150
150
150
125
125
125
125
Orders Booked
170
165
140
120
85
45
20
Projected On-Hand
Inventory
230
65
215
65
190
65
190
65
Master Schedule
300
300
250
250
i.e. Projected on-hand inventory for week 47: = 65 + 300 150 = 215
Available-to-Promise
On-hand inventory at end of October =
Month
Week
100
November
December
45
46
47
48
49
50
51
52
Forecast Demand
150
150
150
150
125
125
125
125
Orders Booked
170
165
140
120
85
45
20
Projected On-Hand
Inventory
230
65
215
65
190
65
190
65
Master schedule
300
300
250
250
Available-to-Promise
65
40
120
70
230
100
November
December
45
46
47
48
49
50
51
52
Forecast Demand
150
150
150
150
150
150
150
150
Orders Booked
170
165
140
120
85
45
20
Projected On-Hand
Inventory
230
65
215
65
165
15
115
(35)
Master schedule
300
300
250
250
Available-to-Promise
65
40
120
230
100
November
December
45
46
47
48
49
50
51
52
Forecast Demand
150
150
150
150
125
125
125
125
Orders Booked
170
230
140
120
85
45
20
Projected On-Hand
Inventory
230
150
125
125
Master schedule
300
300
250
250
Available-to-Promise
40
120
230
12
13
Operations
MPS
Considerations of MRP
15
. . . Now
what?
16
Seat
Front legs (2)
Leg
Assembly
Legs (2)
Cross
bar
Seat
Side
rails (2)
Back Assembly
Cross
bar
Back
Supports
(3)
18
Graphic Lead-Time
Week 1
Week 2
Week 3
Week 4
Week 5
Back
Assembly
(1 week)
Seats (2 weeks)
Legs (2 weeks)
Leg
Assembly
(1 week)
Chair
Assembly
(1 week)
19
22
Going
Deeper
25
25
25
25
25
25
25
Note effect of
differences in
lead times and
order sizes on
the gross
requirements
for each
component
26
25
25
25
27
28
Other Considerations I
MRP
Feedback
Feedback
Planned Orders
Production
Suppliers
29
Other Considerations II
When do we update the system?
Capacity requirements planning using
MRP output
Pegging
Lot sizing issues
30
Recall ...
25
25
25
If we order lot-for-lot
25
25
25
DRP Example I
DRP Example II
DRP Benefits
Helps improve customer service
Provides a better and faster understanding of
the impact of shortages and/or promotions
Helps reduce costs
Inventory
Freight
Production
DRP Constraints
Accurate forecasts and inventory levels
Nervousness