BU395 Chapter Notes - Chapter 14: Carrying Cost, Wok, Data Conversion
Document Summary
Material requirements planning (mrp) is a planning and scheduling technique primarily used for batch production of the components of assembled items. Enterprise resource planning (erp) is used to manage and coordinate all the resources, information, and functions of an organization from a shared database. Dependent demand demand for subassemblies, parts, or raw materials that are derived from the plan for production of finished goods. The parts that go into making an automobile. Mrp the activity that determines the plans for purchasing and production of dependent- demand components. The production plan for a specified number of each product is converted into the requirements for its sub-assemblies, parts, and raw materials, working backward from the due date of the product, using lead times and inventories on hand. This determines when and how much to order of each component. Requirements for end items generate requirements for lower-level components.
