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16 Cards in this Set

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  • Back

Material Requirements Planning

(MRP) computerized inventory control and production planning system that aims to schedule the right quantity materials at the right time and place in order to minimize unnecessary inventories and costs

Goal of MRP

to eliminate excess inventory and ensure material is available when needed

Inputs of MRP

master production schedule

bill of materials

item master file

Outputs of MRP

planned order release

Master Production Schedule

provides the forecasted sales orders or demands for a finished product

Bill of Materials

database of all items that make up the final product

Parent vs Child

parent- above level of product structure tree

child- below level of product structure tree

-> can be more than one parent

Low Level Code

the lowest level a product is listed as on the product structure tree

Item Master File

database of info on each item produced, ordered or inventoried

Information the IMF provides

lead time, lot size, on hand inventory, scheduled receipt

Planned order release

tells you how much needs to be ordered and when

Benefits of MRP

- speedy replacement with unexpected setbacks

- accurate forecast of dependent demand items

- improves productivity

- minimizes bullwhip effect

Manufacturing Resource Planning

(MRPII) helps determine labor hours, material costs, capital costs, and other resources needed once the MRP is in place

Enterprise Resource Planning

(ERP) organizes and manages a company's business processes by:

- sharing info across functional areas

- integrating business processes

- facilitating consumer interaction

- providing benefit to global companies

Benefits of ERP

- synchronization of customer and supplier transactions

- easily shareable data across multiple countries

- useful for online orders

Things MRP schedules

- dependent demand

- discrete demand

- complex products

- erratic orders

- assemble-to-order products