Download - Demand management for Students
MRP: Computerized automated ordering of raw materials.
MRP: Material Requirements Planning
Output:
Purchase Requisitions and/or Purchase Orders
AUTOMATED ORDERING OF RAW MATERIALS
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Sales Forecast (M/S)SOP (Sales and Operations Plan) (Prod)MPS (Master Production Schedule) (Prod)
MRP: Material Requirements Planning
MRP is dependent upon:
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Sales Forecast (M/S)
MRP: Material Requirements Planning
• Sales HistoryWhat did we sell last year?
• GrowthHow much will our business grow? (2%-3%)
• PromotionsWhat months can we expect increased demand? 6
SOP (Sales & Operations Plan) (PROD)
MRP: Material Requirements Planning
• Current Inventory Balance How much do we have now?
• CapacityHow much resources do we have?
• Utilization RateAre we operating at a safe utilization rate?
AGGREGATE / Rough-Cut Plan
Warning!
Warning!
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MPS (Master Production Schedule) (PROD)
MRP: Material Requirements Planning
Needs the Sales & Operations Plan as Input
MPS is DISAGGREGATED / More Specific• Creates a daily or weekly plan – a more specific schedule• It will produce a Planned Order and/or a Production Order
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Demand Management Flow
Sales Forecast
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PROCESS NAMES
• SOP(?)
• SALES
FORECAST
• MRP(?)
• MPS(?)
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INPUTS/OUTPUTS
• Sales History
• Lead Time
• Production Order
• Utilization Rate
• Capacity
• Promotions
• Purchase Requisition
• Purchase Order
• BOM
• Growth
• Lot-Sizing
• Weekly/Daily Demand
• Inventory Balance9