BMO 2201 Lecture Notes - Lecture 3: Material Requirements Planning
24 Dec 2018
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Document Summary
Dependent demand replenishment: inventory requirements are a function of known events that are not generally random, dependent demand does not require forecasting because there is no uncertainty. No specific safety stock is needed to support time-phased procurement programs (e. g. mrp: no safety stock assumes. Vendors and suppliers maintain adequate inventories to satisfy 100% of purchase requirements. Planning approaches coordinate requirements across multiple locations in the supply chain: two planning approaches. Fair share allocation provides each distribution facility with an equitable distribution of available inventory: limited ability to manage multistage inventories. Requirements planning integrates across the supply chain taking into consideration unique requirements: materials requirements planning (mrp) is driven by a production schedule, distribution requirements planning (drp) is driven by supply chain demand. Lead times for components: the time required to purchase, produce, or assemble an item. For production: the sum of the move, setup, and assembly or run times.
