Lesson 7: Resource Planning

Lesson 7: Resource Planning

1. Holding Inventory

   • Reasons
   • Costs/problems
   • Types
     • Cycle
     • Pipeline
     • Anticipation

2. Inv Management Decisions

   • Purchasing Env
     • Ind Demand
     • Dep Demand
   • Purchhasing quanity
     • COP
     • SHC
     • EOQ
     • EBQ
   • Order Timing
     • ROP
     • MRP

3. MRP

   • ROP vs MRP
   • MRP1 & MRP2
   • MRP1
   • Master Production Schedule
   • Bills of Materials
   • Inventory Records file (3)

4. How MRP works

   • 4 Variables
   • MRP Explosion
   • Lot Sizing

5. ERP

   • Deterministic

6. ROP/MRP?

   • 3 Inv Categories
     • HV Items
     • MV Items
     • LV Items
   • MRP Suitable (6)
     • Customer orders can be used to drive the MRP
     • Forcesats = reasonably accurate
     • Products - low moderate complexity
     • Volumes - medium-high
     • IT systems accurate & timely
     • Good stock control discipline

7. Basic Planning & Control Calculations

8. Forward/backward Scheduling

9. Sch = Complicated

10. Sequencing Rules

    • Customer Priority
    • By due date
    • LIFO
    • FIFO
    • LJB
    • SJF

11. ROP Systems

    • Two-bin
    • Strenght
    • Weakness
    • Periodic Review System

12. Benefits (MRP)

    • Reasons for failure (5)