Welcome to
Colorado Technical University
SCM310-1502B-01 : Material and Inventory Management
Wednesday 5/27/2015.
Your course instructor is
David Makhanlall PhD
This is our Phase 2 Chat.
SCM310-1502B-01: Quality
and Supply Chain
Management
This screen will
remain on
“Pause” until
our Chat gets
started in a few
minutes.
Chat Details:
SMC310
Tuesday
late afternoon
&
Wednesday morning.
1
Questions & Answers
How may I help You?
2
Agenda for Wednesday 5/27/2015.
Major assignments review for Phase 1. All assignments are submitted in the
CTU Course (left toolbar) Submit assignments.
•
Phase 2: Assignment 1: DB1: Our 2nd Assignment: TWO PARTS.
Part A:Your personal response to “the pros and cons of establishing a demand-based
ordering system, sometimes referred to as just in time.”
(due by Wednesday 5/27/2015).
Part B: Two detailed comments to classmates’ postings:
(due by Sunday 5/31/2015)
•
Phase 2: Assignment 3: IP: Our 3rd Assignment: Essay “Use the provided MRP
template to develop a 6-week manufacturing resource plan (MRP).”
(due Mon. 6/1/2015).
Please go to “Course Home”, and scroll down to the bottom of the screen to
“Instructor Files” and note the sample essays.
3
Quality is an
On-Going Process
in Any Company
This is reinforced by
Internal Processes
Supplier Initiatives.
Source information for this chat.
References
Pullman, M. (2015). Materials Requirements Planning. Retrieved from
www.sba.pdx.edu/faculty/melliep/459/MRPMEP.ppt
Task List. (2014). MGM375. CTU Online. Retrieved from
https://campus.ctuonline.edu
5
SCM310-1404B-02:
Quality and Supply Chain Management
What is this course about?
Course Description
In this course you will examine current principles and techniques employed in
managing inventories as an integral part of a company’s supply chain. Emphasis
is on developing the right mix of inventory locations and levels to minimize cost
and maximize profit. Impact of supply chain disruptions and ways to mitigate
them are also covered.
Course Outcomes
Discuss the various elements of a material control system.
Produce a Manufacturing Resource Planning (MRP) based on projected
production levels.
Employ a physical inventory and storage system with required inventory
levels
Describe physical distribution systems
Prepare a demand ordering system
Formatting of All Assignments
COURSE MATERIAL INFORMATION: Your textbook is available under the syllabus
tab: Supply Chain Science
NOTE: You will need to read the textbook very carefully before completing assignments.
When you are submitting a Word document, which is required in all Individual Projects
(IP) you must follow these requirements for a title page:
1. Title page: (Assignment title, Your name, Course, Instructor and Date).
2. 1 inch margins all around
3. Double spacing
4. #12 Font, Times New Roman OR Arial
5. Proper paragraph indentations
6. No extra lines between paragraphs
Page 2 and more.
1.
Repeat the title at the top of page two (use the header information)
2.
Introduction (with thesis statement at the end), body paragraphs, and concluding
paragraph.
3. NOTE: You will need to cite from the textbook material in support of your ideas.
4. Add a References page on a new page at the end of the essay.
7
Late Assignment Policies
Individual Projects: If you submit an IP after its due date, the following penalties will apply:
1-3 days late: 5% penalty
4-6 days late: 10% penalty
7-9 days late: 20% penalty
NOTE: Discussion board comments to classmates’ work must be posted within deadlines (Sunday
midnight) of each week; there are no late submissions here.
10+ days late: Assignments that are 9 days and more late may or may not be accepted at my
discretion and is subject to a 25% penalty. I must hear from you before you post here.
My expectations on how these late policies will be met:
When I grade work and your submission is not there, I will assign a “temporary 0” and I will send
you an e-mail reminder to post your work. As soon as I receive an e-mail notification from you that
your submission has been posted, I will promptly grade your work, with the appropriate late-point
deduction.
If you know that an assignment will be late, please contact me at least 2 days before the due date
so that an arrangement can be made. I will e-mail you my response, and make a notation in your
gradebook when I grade work; a “temporary 0” will be assigned until your work is received and graded.
If you are approved to turn in an assignment late (without late-point deductions), you must email me
when you submit it; otherwise, I will not grade it because I will not know it is there.
The last assignment must be turned in no later than the last day of class unless an ‘Incomplete’
grade has been granted in advance.
8
THE IMPORTANCE OF PROPER APA CITATIONS AND REFERENCES.
Please note that it is important to cite correctly and to provide a References page, which must be in
the APA style of documentation. Note the following:
1. If it is not your own idea (you have looked it up elsewhere) and you have added it into your essay,
be sure to cite correctly.
2. It is best to cite (quote, summarize, paraphrase) researched material correctly in your essay when it
appears IN your writing in your paragraphs.
3. When quoting, quote brief sentences only.
By all means, please avoid the following:
1. DO NOT Copy/paste huge extracts work from the internet and then add a Reference listing at the
end of the essay. This is NOT sound documentation practices.
2. DO NOT reword the researched information in your own words and then add a References listing at
the end of the essay. This is NOT sound documentation practices.
The reference source must be indicated immediately when you introduce your researched material IN
the paragraph by following the APA style of documentation.
The bulk of your essay must be your own ideas and interpretation of the primary source (textbook),
and from secondary sources, with citations APA style in the paragraph, as follows:
1. From the reading (primary source: textbook) to support your ideas
2. From a secondary source (researched material from the CTU online library and/or credible
Websites) to enhance your ideas.
9
CTU Academic Honesty Policy
Take care to review CTU’s academic honesty policy as posted in the first Task List. I am repeating
this here. Academic Honesty: NOTE: Please note these guidelines.
CTU measures success by promoting a culture of integrity at all levels of the University. Our idea of
academic integrity includes respect, responsibility, trust, fairness, and honesty.
As a student of CTU, you are expected to submit authentic, original work that fully acknowledges
any outside materials used in support of each assignment.
I encourage you to review the University Policies located on the Virtual Campus home tab. Our
Academic Honesty policies in particular, as it applies to plagiarism and cheating are extremely
important.
Please note that the University takes a very strict stance on this matter and it will be up to you to
familiarize yourself fully.
If a student compromises academic integrity, the University reserves the right to enact academic
consequences that may lead to dismissal from the University.
REFER TO “Honesty Letter.”
Therefore, please review the Task List guidance, and do not forget to review the sample essays
located at “Course Home, “Instructor Files.”
Take good care to follow these recommendations as you complete your Final Essay, which carries a
value of 250 points.
Please review this link for further guidance: http://www.plagiarism.org/
10
Outlining and Developing an Essay
Please follow this plan for your mini-essays and essays.
Write in complete paragraphs.
Outline: develop your ideas in complete paragraphs.
I. INTRODUCTION
A. Start with a sentence that will catch the attention of the reader,
but also introduces the subject of the paper.
B. Name Main Points - Usually two or three, in the same order in
which they will be discussed in the essay body.
C. State Thesis - Opinion or point of view you intend to defend,
to be supported by main points.
II. BODY : Always add a citation in support of your analysis.
A. Main Point - First Paragraph (same for Second and Third Paragraphs)
1. Topic Sentence - Introduce first main point; limits
paragraph to only that topic.
2. Examples that are illuminative and provide proof for
you topic.
3. Explanation and details: add your citations from the textbook and secondary source to
support your ideas.
4. Conclusion/Transition
III. CONCLUSION
A. Return to general discussion as in INTRODUCTION.
B. Restate Thesis (NOTE: Restating the thesis means rewording
the thesis, not simply "cutting & pasting it").
C. Concluding Statement - Ends essay with impact and makes it
more than simply repetition of the Introduction.
Reference: this is on a new page at the end of the essay in the same document.
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SAMPLE APA MINI-ESSAY. Spend a Little, Save a Lot: Live Healthy and Ride the Bus to Work.
If you are a driver, you can hop in your car at any hour of the day or night and speed off to any destination you please.
This is a very convenient way to travel. However, you may not realize this, but your car is a major expense and a constant source
of pollution. There is a very simple way to help reduce pollution, save money, and be safer all at the same time: ride the bus to
work. By doing this, you will find that your lungs no longer hurt from the pollution on the roads, you will save your hard-earned
money by avoiding the gas and repair bills, and your mind will be free from the stress of avoiding accidents and navigating
through heavy traffic.
Cutting back on pollution is something that everybody should consider doing. This is very important since living healthy
lives depend on healthy practices. Indeed, we should be concerned with what we breathe in to our bodies. How can we best
accomplish this clean-air practice? Of course, mass transit is the clear solution. First, let us look at some important figures on the
amount of pollutants resulting from driving our car. According to Artunian (1995), “On average, riding mass transit instead of
driving cut hydrocarbons emissions that produce smog by 90%, carbon monoxide by more than 75%, and nitrogen oxide by a
range of 15% to 75%” (p. 17). Therefore, we can see that a single person can make a difference by riding the bus. The long-term
benefits are staggering. By not driving a car for one year, that one person can save “9.1 pounds of hydrocarbons, 62.5 pounds of
carbon monoxide, and 4.9 pounds of nitrogen oxide” (Camp, 1995). It is clear then that if more people park their cars and ride the
bus, there will be fewer vehicles on the road to give off polluting fumes. As indicated in the Transit Guide and Route Map (1996)
there are seventy bus lines running throughout the city, with a bus every twenty minutes at peak travel times, and “transfer” passes
are available all week-days; indeed, for one dollar, you can get to work feeling healthy and energized to put-in a full day’s work at
maximum efficiency, with time enough to take a well-deserved nap on the ride back home.
In addition, there can be substantial savings by not driving the car to work….
Also, think of the stress-free days we can enjoy by just relaxing in the bus to and from work….
Since we do have public transit, why not try riding the bus for a change? You can breathe clean air, take naps, and comehome refreshed for an enjoyable evening at the TV or even go out with the family. Indeed, you and your family deserve the very
best. After all, riding the bus helps not only you but your fellow travelers as well.
References
Artunian, J. (1995, 2 Jan.). Want to clear the air? Hop on the bus!
Current Health, 16-17.
Camp, D. H. (1988, 18 Nov.). Dollars and sense: The economic case for public
transportation in America. CTTA Online. Community Transportation Association
12
of America. Retrieved on June 27, 2009 from http://www.ctta.org/pubs/dollars.
Transit Guide and Route Map. Map. (2009). Corvallis: Corvallis Transportation
Outlining and Developing an Essay
Please follow this plan for your mini-essays and essays.
Write in complete paragraphs.
Please review the following links for proper development of an APA style
paper.
Review this video and note the text information also: The 5 Paragraph Essay
Format: http://www.englishdiscourse.org/5.paragraph.essay.format.1301.html
Sample papers format:
http://digitalcommons.liberty.edu/cgi/viewcontent.cgi?article=1134&context=educ_fac_pubs
Detailed format: https://www.hvcc.edu/lrc/research/apa-sampleresearchpaper.pdf
Example of an APA research paper:
http://wwwcc.ivytech.edu/shared/shared_librstatewidecc/pdf
files/sample_papers_mla_apa/revised_sample_apa_paper.pdf
13
How to do very well in this course
1. Read the assigned course materials very carefully
2. Plan your essay based on the Task List requirements
3. Read and Quote from the textbook (primary source)
4. Add secondary sources (what the critics say) to
reinforce your ideas.
5. Develop sound APA documentation practices.
Please note these helpful suggestions:
Note the recommendations in the Task List on how to approach
the reading, drafting, writing and revising processes with APA
documentation.
Go to “Course Home”, and scroll down to the bottom of the screen
to “Instructor Files” and note the sample essays.
Twice weekly chats: Attend the chats, OR listen to the archived
chats. The Power Point files for all chats will be available before
the chats (same process as #1 above).
15
Course Assistance
NOTE:
Every Task List for each assignment has a link to a complete
audio/video learning experience “My Unique Learning
Experience”: please note these links, and be well-acquainted
with the information: look for this “blue box” link in the Task
List:
“M U S E.”
For information on the complete grading matrix, please refer to the
information at the top of the Task List.
16
GRADING RUBRIC
17
Please note: Writing Center
IMPORTANT COURSE DOCUMENTS (Please Review).
* go to top toolbar "Learning Center:
* next go to "Learning Labs"
* scroll down below "General Labs"
* "click" on link "Writing Support Center."
Please note this also: Writing Center Chat Schedule:
Go to Learning Center.
18
CTU Online: Library Tours and Chats:
Librarian Office Hours
Have a question about finding resources for your assignment but aren’t quite sure where in the
library to start? During these weekly sessions a librarian will be available to help you choose
keywords and databases to use in your research. We’ll be able to use the screen sharing available
in the classroom so you can see exactly how to conduct the search on your own. Bring your
questions and topics you are researching.
Review Library Website for details of chat
*Note these office hours are held in the library’s classroom and will not be recorded. For general
information about using the library check out one of the tours listed below.
To Access the Library Classroom
Go to the Library.
Click on the link for Library Classes and Events under Library Information in the center of the
page. A new page will open
Click on the link for the classroom next to the calendar. The link will be live only a few minutes
before the scheduled start time. The classroom will open in a new window.
The classroom is open 15 minutes before the class begins.
If you have questions, let us know at librarian@ctuonline.edu
English Resources in the Library
Review Library website for details of chat
19
Questions & Answers
How may I help You?
20
Format for all IP Documents
When you are submitting a Word document, which is required in all
Individual Projects (IP) you must follow these requirements:
•
•
•
•
•
•
•
1. Title page (Essay Title, Your Name. Course, Instructor, Date).
2. 1 inch margins all around
3. Double spacing
4. #12 Font, Times New Roman OR Arial
5. Proper paragraph indentations
6. No extra lines between paragraphs
7. References page on a separate page at the end (last page) of the
essay
• We are using the APA style of documentation in this course.
21
Assignments for this course
#
Ph
Task
Type
Format
Description
Length
Due Date
Points
1
1
1
DB
Post DB
Self-introduction
2-3 par
Wed 5/20/2015
10
2
1
2
DB 2
Post DB
Supply Chain Globalization
2 follow-up comments
Mini-essay: 400-600 words
100 words each comment
Wed 5/20/2015
Sun 5/24/2015
75
3
1
3
IP
Submit
Word Doc
Sourcing concepts: local and
global
Essay: 1000 – 1,250 words
Mon 5/25/2015
100
4
2
1
DB
Post DB
Mini-essay: 400-600 words
100 words each comment
Wed 5/27/2015.
Sun 5/31/2015
75
5
2
2
IP
Submit
Word Doc
Demand based ordering
system
2 follow-up comments
MRP Analysis With Template
Essay: 1000 – 1,250 words
Mon 6/1/2015
100
6
3
1
DB
Post DB
Warehousing Analysis
2 follow-up comments
Moni-essay: 400-600 words
Wed 6/3/2015
Sun 6/7/2015
75
7
3
2
IP
Submit
Word Doc
Power-Point: Supply Chain
Analysis
20-25 slides with notes
Mon 6/8/2015
100
8
4
2
DB
Post DB
Draft/outline of Phase 5 IP:
Supply Chain proposal.
Draft/outline
Wed 6/10/2015
Sun 6/14/2015
75
9
4
1
IP
Submit
Word Doc
Supply Chain Proposal
Draft of Phase 5 IP
Mini-essay: 2000-2,500
words, and chart.
Mon 6/15/2015
150
10
5
1
DB
Post DB
Personal analysis of course
2 follow-up comments
Mini-essay: 3-5 par
100 words each
Wed 6/17/2015
Sun 6/21/2015
40
11
5
2
IP
Submit
Word Doc
Supply Chain Proposal
Final: Revision of Ph. 4 IP.
Essay: 2000 – 2500 words
Mon 6/22/2015
250
22
Questions & Answers
How may I help You?
23
OUR FOURTH ASSIGNMENT: Phase 1 DB 2: TWO PARTS.
Part A: “Quality Programs”: (due by Wednesday 5/27/2015).
Part B: Two detailed comments to classmates’ postings: (due by Sunday 5/31/2015)
Assignment: One Primary Posting & Two Follow-up Comments to Classmates’ Postings.
Primary Task Response:
As a newly hired manager for a consumer products manufacturing company, your chief executive officer
(CEO) has asked you to educate the senior staff on the pros and cons of establishing a demand-based
ordering system,
This is sometimes referred to as just in time, versus the more traditional forecast-based ordering system
that the firm has used for years.
Make sure you provide at least 2 pros and 2 cons for each of the 2 different systems.
24
OUR FOURTH ASSIGNMENT: Phase 1 DB 2: TWO PARTS.
Part A: “Quality Programs”: (due by Wednesday 5/27/2015).
Part B: Two detailed comments to classmates’ postings: (due by Sunday 5/31/2015)
Primary Task Response:
As a newly hired manager for a consumer products manufacturing company, your chief executive
officer (CEO) has asked you to educate the senior staff on the pros and cons of establishing a
demand-based ordering system. This is sometimes referred to as just in time, versus the more
traditional forecast-based ordering system that the firm has used for years. Make sure you provide at
least 2 pros and 2 cons for each of the 2 different systems.
Suggested mini-Essay Plan:
Introductory paragraph: Define Just In Time and Traditional Purchasing
First body Paragraph: Discuss pros and cons of each system
Second body paragraph: Provide at least 2 pros and 2 cons for each of the 2 different systems.
Conclusion paragraph: Your final recommendations.
25
•
•
•
•
•
•
•
•
•
Guidance: Review previous Task List (above) on how to develop strong paragraphs.
Review: The Importance of Quality Improvement in Your Business Venture:
http://www.sixsigmaonline.org/six-sigma-training-certification-information/theimportance-of-quality-improvement-in-your-business-venture.html
Review: Efficient and Effective Vendor Management Best Practices:
http://www.iimmbangalore.org/knowledge-domain/201-efficient-and-effective-vendormanagement-best-practices-.html
Review video vendor initiatives: https://www.youtube.com/watch?v=-woErTmzfME
NOTE: the video above is for informational purposes only. If you refer to this video in
your essay, please cite correctly APA style:
If you refer to the textbook information or you have consulted secondary sources,
take care to cite correctly APA style and include a References page.
Review this link on APA documentation:
https://owl.english.purdue.edu/owl/resource/560/01/
Video on APA documentation: https://www.youtube.com/watch?v=tNuYwptSzP8
26
OUR FOURTH ASSIGNMENT: Phase 1 DB 2: TWO PARTS.
Part A: “Quality Programs”: (due by Wednesday 5/27/2015).
Part B: Two detailed comments to classmates’ postings: (due by Sunday 5/31/2015)
Responses to Other Students:
Respond to at least 2 of your fellow classmates with at least a 100-word reply about their
Primary Task Response regarding items you found to be compelling and enlightening.
To help you with your discussion, please consider the following questions:
What did you learn from your classmate's posting?
What additional questions do you have after reading the posting?
What clarification do you need regarding the posting?
What differences or similarities do you see between your posting and other
classmates' postings?
27
Questions & Answers
How may I help You?
28
OUR FIFTH ASSIGNMENT: Phase 2 IP
Task Type: Individual Project Deliverable Length: 1,000 words
Points Possible: 100 Due Date: 6/1/2015 11:59:59 PM
Part 1: Use the provided MRP template to develop a 6-week manufacturing resource plan
(MRP), given the following information:
Download the MRP Template
The finished product being produced requires 1 of component A, 2 of component B,
and 0.5 of component C.
The production plan is to have in inventory, ready for sale, 100 units by the end of
each of weeks 1–3 and 200 of the finished units by the end of weeks 4–6.
All the components A, B, and C must be available at the beginning of the planned
production week.
Lead times from the vendors for A, B, and C are 1, 2, and 3 weeks respectively
Production takes 1 week.
(For example, you would want necessary quantities of A,B, and C in the factory on
Monday morning so that the finished units would be available for sale at the end of that
same week.).
Part 2: At the bottom of this template, describe the importance of accurate lead time and
29
bill of material information to have an accurate MRP.
OUR FIFTH ASSIGNMENT: Phase 2 IP
Task Type: Individual Project Deliverable Length: 1,000 words
Points Possible: 100 Due Date: 12/1/2014 11:59:59 PM
MRP Template for Phase 2 Individual Project
3 weeks
earlier
Production Required by end of week:
2 weeks
earlier
1 week
earlier
1
2
3
4
5
6
100
100
100
200
200
200
Total As needed at 1 per unit
When must As be ordered, and how many: 1
week lead time
Total Bs needed at 2/unit
When must Bs be ordered, and how many: 2
week lead time
Total Cs needed at 0.5/unit
When must Cs be ordered, and how many: 3
week lead time
Part 1: Use the provided MRP template to develop a 6-week manufacturing resource plan (MRP), given the following information:
Download the MRP Template
The finished product being produced requires 1 of component A, 2 of component B, and 0.5 of component C.
The production plan is to have in inventory, ready for sale, 100 units by the end of each of weeks 1–3 and 200 of the finished
units by the end of weeks 4–6.
All the components A, B, and C must be available at the beginning of the planned production week.
Lead times from the vendors for A, B, and C are 1, 2, and 3 weeks respectively
Production takes 1 week.
(For example, you would want necessary quantities of A,B, and C in the factory on Monday morning so that the finished units
would be available for sale at the end of that same week.).
Part 2: At the bottom of this template, describe the importance of accurate lead time and bill of material information to have
30
an accurate MRP.
Questions & Answers
How may I help You?
31
Material Requirements Planning
ISQA 459 Class 4 Mellie Pullman
Materials Requirements
Planning
•
•
•
•
Material Requirements Planning (MRP)
MRP Logic and Product Structure Trees
MRP Example
Lot Sizing in MRP Programs
Material Requirements Planning
• Materials requirements planning (MRP) is the
logic for determining the number of parts,
components, and materials needed to
produce a product.
• MRP provides time scheduling information
specifying when each of the materials, parts,
and components should be ordered or
produced.
• Dependent demand drives MRP.
• MRP is a software system.
Example of MRP Logic and
Product Structure Tree
Given the product structure tree for “A” and the lead time and demand
information below, provide a materials requirements plan that defines
the number of units of each component and when they will be needed.
Product Structure Tree for Assembly A
A
B(4)
D(2)
C(2)
E(1)
D(3)
F(2)
Lead Times
A
1 day
B
2 days
C
1 day
D
3 days
E
4 days
F
1 day
Demand
Day 10 50 A
Day 8
20 B (Spares)
Day 6
15 D (Spares)
First, the number of units of “A” are scheduled backwards to
allow for their lead time. So, in the materials requirement plan
below, we have to place an order for 50 units of “A” in the 9th
week to receive them in the 10th week.
Day:
A Required
Order Placement
1
2
3
4
5
6
7
8
9
50
LT = 1 day
10
50
Next, we need to start scheduling the components that make up “A”. In
the case of component “B” we need 4 B’s for each A. Since we need 50
A’s, that means 200 B’s. And again, we back the schedule up for the
necessary 2 days of lead time.
Day:
A
1
2
3
4
5
6
7
8
R e q u ire d
50
R e q u ire d
20
O rd e r P la c e m e n t
20
LT = 2
A
B(4)
D(2)
10
50
O rd e r P la c e m e n t
B
9
D(3)
200
Spares
4x50=200
C(2)
E(1)
200
F(2)
Finally, repeating the process for all components, we have the
final materials requirements plan:
Day:
A
LT=1
B
LT=2
C
LT=1
D
LT=3
E
LT=4
F
LT=1
1
Required
Order Placement
Required
Order Placement
Required
Order Placement
Required
Order Placement
Required
Order Placement
Required
Order Placement
2
3
4
5
6
20
7
8
9
20
50
200
200
100
55
20
400
55
400
20
200
100
300
300
200
200
200
A
Part D: Day 6
B(4)
D(2)
40 + 15 spares
C(2)
E(1)
D(3)
F(2)
38
10
50
Material Requirements
Planning System
• Based on a master production schedule,
a material requirements planning
system:
– Creates schedules identifying the
specific parts and materials required
to produce end items.
– Determines exact unit numbers
needed.
– Determines the dates when orders for
those materials should be released,
based on lead times.
40
Firm orders
from known
customers
Aggregate
product
plan
Forecasts
of demand
from estimates
Engineering
design
changes
Master
production
schedule
(MPS)
Inventory
transactions
Bill of
material
file
Material
planning
(MRP)
Inventory
record
file
Reports
Bill of Materials (BOM) File
A Complete Product Description
•
•
•
•
•
Materials
Parts
Components
Production sequence
Modular BOM
– Component or Subassemblies BOM
• Planning BOM or kits
– create an artificial parent to the BOM used for inexpensive items
like washers or pins to group.
• Explosion: revealing the requirements for each
component.
Coding
• If identical items exist
at various levels in the
BOM:
– Item is coded at lowest
level at which it occurs
– D (Level 2 or Level 3)
– This number identifies
the part at the lowest
level of usage.
A
B
D
C
E
E
F
G
D
Inventory Records File
• Buckets= time units in MRP system
– Week bucket vs. day bucket
• Each inventory item carried as a separate file
– Status according to “time buckets”.
• Pegging
– Identify each parent item that created demand.
• Parent vs. child
– Parent= Items above the current level
– Child = Items below the current level
Primary MRP Reports
• Planned orders to be released at a future time.
• Order release notices to execute the planned
orders.
• Changes in due dates of open orders due to
rescheduling.
• Cancellations or suspensions of open orders
due to cancellation or suspension of orders on the
master production schedule.
• Inventory status data.
Secondary MRP Reports
• Planning reports, for example,
forecasting inventory requirements over a
period of time.
• Performance reports used to determine
agreement between actual and
programmed usage and costs.
• Exception reports used to point out
serious discrepancies, such as late or
overdue orders.
Additional MRP Scheduling
Terminology
• Gross Requirements: needed during each period.
• Scheduled Receipts: Existing orders that arrive at beginning of
period.
• On-hand or available balance:
– (depending on software convention, could be at the beginning of each
period or end):
– Book: Inventory balance at end of each period.
• Net requirements: What is need to meet requirements and safety
stock.
• Planned order receipt: arrives at beginning of period.
• Planned order release: Addresses lead time.
MRP Examples
Closed Loop MRP
Production Planning
Master Production Scheduling
Material Requirements Planning
Capacity Requirements Planning
No
Feedback
Realistic?
Yes
Execute:
Capacity Plans
Material Plans
Feedback
Lot Sizing in MRP Programs
•
•
•
•
•
Lot-for-lot (L4L)
Economic order quantity (EOQ)
Least total cost (LTC)
Least unit cost (LUC)
Part Period Balancing-changing lot sizes
to reflect requirements in the future (how
many periods should be combined to
reduce cost)
MRP Game
Different types of lot sizes
Tinker Toy Lawn Mower
Questions & Answers
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Source information for this chat.
References
Pullman, M. (2015). Materials Requirements Planning. Retrieved from
www.sba.pdx.edu/faculty/melliep/459/MRPMEP.ppt
Task List. (2014). MGM375. CTU Online. Retrieved from
https://campus.ctuonline.edu
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Questions & Answers
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In conclusion:
How to do very well in this course
1.
Read the assigned course materials very carefully
2.
Plan your essay based on the Task List requirements
3.
Quote from the textbook (primary source) to support your ideas
4.
Add secondary sources (what the critics say) to reinforce your
ideas.
5.
Develop sound APA documentation practices.
Questions & Answers
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Questions & Answers
How may I help You?
Our Next Chat
Tuesday Afternoon.
See you there!
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