Chapter 15Chapter 15Planning for Material andPlanning for Material andResource RequirementsResource Requirements

IDS 605IDS 605

BUSINGBUSING

Alternative Process for Alternative Process for Developing a Master Production Developing a Master Production

ScheduleSchedule

Transparency 15.5 (Exhibit 15.6)

Material Requirements Material Requirements PlanningPlanning

Planning for all the parts and components necessary to support the master production schedule (MPS).» MRP tells us for “how much” and “when” to

launch replenishment orders for dependent demand items (i.e., it is time phased)

» MRP record processing has several required pieces of information

Information Required for MRP Information Required for MRP Record ProcessingRecord Processing

Bill of Material Current Inventory Status Data

» on hand» scheduled receipts

Master Production Schedule (MPS) Planned Lead Time Information Order Policy

» minimum (minQ), multiple (Q=), lot-for-lot (LFL)

Exploded View ofExploded View ofMaine Woods’ TricycleMaine Woods’ Tricycle

Transparency 15.11 (Exhibit 15.13)

Product Structure Tree Diagram Product Structure Tree Diagram for Maine Woods’ Tricyclefor Maine Woods’ Tricycle

Transparency 15.12 (Exhibit 15.14)