OPER-3006EL Chapter Notes - Chapter 14: Master Production Schedule, Material Requirements Planning, Customer Relationship Management

• School: Laurentian
• Department: Finance and Operations
• Course: OPER-3006EL
• Professor: Amirmohsen Golmohammadi

Document Summary

Chapte(cid:396) 14 mate(cid:396)ial re(cid:395)ui(cid:396)e(cid:373)e(cid:374)t pla(cid:374)(cid:374)i(cid:374)g (cid:894)mrp(cid:895) & e(cid:374)te(cid:396)p(cid:396)ise resou(cid:396)ce pla(cid:374)(cid:374)i(cid:374)g (cid:894)erp(cid:895) Dependant demand the demand for one item is related to the demand for another item; demand for items is dependent when the relationship between the items can be determined. Dependent demand: once management receives an order or makes a forecast for the final product, quantities for all components can be computed. All components are dependant items: for any product for which a schedule can be established, dependent techniques should be used. When the requirements of mrp are met, dependent models are preferable to eoq models. Dependent models are better not only for manufacturers and distributors, but also for a wide variety of firms. Material requirements planning (mrp) a dependent demand technique that uses a bill of material, inventory, expected receipts, and a master production schedule to determine material requirements. Effective use of dependent inventory models requires that the operations manager know the following: master production schedule (mps)