GMS 401 Chapter Notes - Chapter 14: Material Requirements Planning, Lead Time, Planning Horizon
Document Summary
Dependent demand- demand for subassemblies, parts, or raw materials that are derived from the plan for production of finished goods. Once the independent demand is known the dependent demand can be determined. Overview of the map: material requirements (mpr)- determines the plans for purchasing and production of dependent-demand components. Enormous task of setting up production schedules for products. Keeping track of large numbers of raw materials, parts and subassemblies and coping with change. Lack of differentiation between independent demand and dependent demand items: outputs from mrp immediate and planning other releases and various reports. Separates the planning horizon into series of time periods or time buckets expressed in weeks or days: separated into time buckets, planning horizon > cumulative lead time (for all phases of process) Cumulative lead time- sum of the lead times that sequential phases of a process require, from ordering of components to completion of final assembly.