BU395 Chapter Notes - Chapter 14: Master Production Schedule, Material Requirements Planning, Planning Horizon
Document Summary
Chapter 14: material requirements planning and enterprise resource planning. Mrp: planning and scheduling technique used to manage production or purchase of components of assembled items. Erp/enterprise software: used to manage and coordinate all resources, information, and functions of an organization from a shared database. Dependent demand: when demand for items is derived from plans to make certain products. E. g. components that go into the production of a particular model of automobile have dependent demand b/c amounts needed are a function of the # of cars that is planned to be produced. Independent-demand items must be carried on a continuous basis, but dependent-demand items need only be stocked just prior to the time they will be needed in production. Predictability of usage of dependent-demand items implies that there is little need for safety stock. Material requirements planning (mrp): activity that determines the plans for purchasing and production of dependent-demand components.
