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Resource Planning Systems: Principles of Supply Chain Management: A Balanced Approach
Resource Planning Systems: Principles of Supply Chain Management: A Balanced Approach
Resource Planning Systems: Principles of Supply Chain Management: A Balanced Approach
RESOURCE PLANNING
SYSTEMS
6” Steel Level 5
Bar (¼)
Model A ATV––Level 0 1 2 3 4 5 6 7 8
Gross requirements 10 10 20 0 20 0 0 20
Scheduled receipts 10
Projected on-hand inventory 30 20 20 20 20 20 20 20 20
Planned order releases 20 20 20
Q = 10; LT = 2; SS = 15
1 1 1
Engine assembly––Level 1 1 2 3 4 5 6 7 8
Gross requirements 20 20 20
Scheduled receipts 20
Projected on-hand inventory 2 2 2 0 0 0 0 0 0
Planned order releases 18 20
Q = LFL; LT = 2; SS = 0
1 1
Piston assembly––Level 2 1 2 3 4 5 6 7 8
Gross requirements 18 20
Scheduled receipts 20
Projected on-hand inventory 10 12 12 12 22 22 22 22 22
Planned order releases 30
Q = 30; LT = 1; SS = 10
4
Connecting rods––Level 3 1 2 3 4 5 6 7 8
Gross requirements 120
Scheduled receipts
Projected on-hand inventory 22 22 22 52 52 52 52 52 52
Planned order releases 150
Q = 50; LT = 1; SS = 20
© 2009 South-Western, a division of Cengage Learning 21
Capacity Planning
Excess (or insufficient) capacity prevents firm
from taking advantage of the efficiency of
manufacturing planning & control system.
Resource Requirement Planning (RRP) - a
long-range capacity planning module, checks
whether aggregate resources are capable of
satisfying the aggregate production.
Resources considered include gross labor
hours & machine hours.
Medium-range capacity plan, or rough-cut
capacity plan (RCCP) - used to check
feasibility of MPS. Converts MPS from
production needed to capacity required, then
compares it to capacity available.
Capacity requirement planning (CRP) - a short-
range capacity planning technique that is used
to check the feasibility of the material
requirements plan.
© 2009 South-Western, a division of Cengage Learning 22
Distribution Requirements
Planning (DRP)
Distribution requirements planning
(DRP) - a time-phased finished good
inventory replenishment plan in a distribution
network
-- DRP is a logical extension of the MRP
system & ties physical distribution to
manufacturing planning and control
system
6+2=8
2 + 12 = 14
Logistics
Operations and
Warehouse
Sales
Engineering and
Marketing
Supplier Central Database Customer
Relationship and Relationship
Management Servers Management
Data
Human
Support
Resources
System
Finance
Headquarters
and
and
Accounting
Branches