Dependent Demand Inventory Model

Material Requirements Planning (MRP) Class Examples 1. Basic Example: A ompany t!at manu"a turers "urniture produ es a parti ular type o" o""ee ta#le. As you mig!t guess$ ea ! o""ee ta#le !as "our legs. %!e produ tion lead time "or t!ese legs is t&o &ee's. Inventory re ords s!o& t!at ($)** o" t!ese legs &ill #e availa#le as on+!and inventory at t!e #eginning o" &ee' ,(. An order "or ($)** legs !as already #een released and is s !eduled to arrive in &ee' ,,. %!ese legs may #e produ ed in any quantity (i.e.$ lot+"or+lot). -se MRP to s !edule planned order releases. Master Schedule Coffee Tables Week 33 34 35 36 37 .** .)* ,** .)* .** 32 33 34 35 36 37

32 )** Week Number: Item: Coffee Table Gross requirements Scheduled receipts Projected on hand Net requirements Planned-order receipts Planned-order releases Week Number: Item: Legs LT!" #!L$L Gross requirements Scheduled receipts Projected on hand Net requirements Planned-order receipts Planned-order releases

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33

34

35

36

37

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Multiple Parents Example: Consider t!e "ollo&ing produ t stru tures/ A B

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Determine t!e gross requirements "or item C$ given t!e master s !edule "or A and 0$ #elo&. Master Schedule (!ee" $ ,* )*

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Week Number: Item: Gross requirements Scheduled receipts Projected on hand Net requirements Planned-order receipts Planned-order releases Week Number: Item: Gross requirements Scheduled receipts Projected on hand Net requirements Planned-order receipts Planned-order releases Week Number: Item: Gross requirements Scheduled receipts Projected on hand Net requirements Planned-order receipts Planned-order releases

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Effects of 'rder Policies(Safet) Stoc"s Example: 1 (' 2 "' 3 () 4 "' 5 *' 6 *(

Week Number: Item: % LT!"& Lot-for-lot& SS!' Gross requirements Scheduled receipts

Projected on hand Net requirements Planned-order receipts Planned-order releases Week Number: Item: % LT!"& +ultiples of )'& SS!' Gross requirements Scheduled receipts Projected on hand Net requirements Planned-order receipts Planned-order releases Week Number: Item: % LT!"& +IN#!()& SS!' Gross requirements Scheduled receipts Projected on hand Net requirements Planned-order receipts Planned-order releases Week Number: Item: % LT!"& Lot-for-lot& SS!) Gross requirements Scheduled receipts Projected on hand Net requirements Planned-order receipts Planned-order releases

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Multiple Parents Example: A ompany ma'es an end produ t$ A$ &!i ! onsists o" su#assem#ly 0 and omponent parts C and D$ as s!o&n in t!e "ollo&ing tree diagram. Ea ! level o" t!e diagram s!o&s t!e items$ and t!e num#er o" t!ose items$ needed "or t!e next !ig!er level. %!e ompany1s inventory re ords indi ate t!at )* o" su#assem#ly 0 and 1$*** o" part C &ill #e on !and at t!e #eginning o" &ee' 1. Produ tion lead time "or su#assem#ly 0 is one &ee'$ and 1** are s !eduled to arrive in &ee' 1. Part C is ordered "rom a supplier in lots o" 1$*** and !as a t&o+ &ee' lead time. Develop planned order releases "or part C$ #ased on a master s !edule "or A t!at alls "or produ tion o" )*$ 2)$ ()$ 3*$ 2)$ and 4* units o" item A in &ee's 1 t!roug! 3$ respe tively. A

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Week Number: Item: Gross requirements Scheduled receipts Projected on hand Net requirements Planned-order receipts Planned-order releases Week Number: Item: , Gross requirements Scheduled receipts Projected on hand Net requirements Planned-order receipts Planned-order releases Week Number: Item: Gross requirements Scheduled receipts Projected on hand Net requirements Planned-order receipts Planned-order releases