COB 300C The Operations Dimension

Master Production Scheduling and Material Requirements Planning (bring class examples to class)

Master Production Scheduling and Material Requirements Planning (Detailed Material Planning)

Maine Woods Co. Aggregate Plan (partial) Wheel Goods Product Group Regular Over Forecast Time Time Inventory Month Demand Production Production Beginning Ending Sept. 2,500 2,000 1,000 500 Oct. 2,900 2,000 400 500 0 Nov. 2,400 2,000 400 0 0 Dec. 2,000 2,000 0 0

Maine Woods Co. Master Production Schedules, Wheel-Goods Product Group

Alternative Process for Developing a Master Production Schedule

Calculation of Total Capacity Requirements for a Master Schedule (Slide 1 of 3)

Calculation of Total Capacity Requirements for a Master Schedule (Slide 2 of 3)

Calculation of Total Capacity Requirements for a Master Schedule (Slide 3 of 3)

Calculation of Estimated Capacity Requirements for Individual Work Stations

Material Requirements Planning

• Planning for all the parts and components necessary to support the master production schedule (MPS).

– MRP tells us for “how much” and “when” to launch replenishment orders for dependent demand items (i.e., it is time phased) – MRP record processing has several required pieces of information

Information Required for MRP Record Processing

• Bill of Material • Current Inventory Status Data – on hand – scheduled receipts • Master Production Schedule (MPS) • Planned Lead Time Information • Order Policy – minimum (minQ), multiple (Q=), lot-for-lot (LFL)

Exploded View of Maine Woods’ Tricycle

Product Structure Tree Diagram for Maine Woods’ Tricycle