1. Resource Planning Chapter 16
This presentation covers Chapter 16 - Resource Planning.
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2. Demand Patterns | | | | | | | | | | 1 5 10 Day 2000 — 1500 — 1000 —
| | | | | | | | | |
Day
2000 —
1500 —
1000 —
500 —
Bicycles
Rims
2000 —
1500 —
1000 —
500 —
| | | | | | | | | |
Day
Order
1000 on
day 3
Order
1000 on
day 8
The part (a) of the Figure shows a relatively stable demand pattern for the end item.
This slide advances automatically.
Reorder point
Figure 16.1
(a)
(b)
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3. Material Requirements Plan Output
Other
sources
of demand
Authorized
master production
schedule
Inventory
transactions
records
Material
requirements
plan
MRP
explosion
Bills of
materials
Engineering
and process
designs
Figure 16.2
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4. Bill of Materials A Ladder-back chair Seat cushion Seat-frame boards
Front legs A
Ladder-back chair
Back legs
Leg supports
Back slats
Figure 16.3
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5. Bill of Materials Figure 16.3 A Ladder-back chair C (1) Seat
subassembly
D (2)
Front
legs
B (1)
Ladder-back
E (4)
Leg
supports
I (1)
Seat
cushion
H (1)
frame
G (4)
Back
slats
F (2)
legs
J (4)
Seat-frame
boards
Figure 16.3
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6. Master Production Schedule
Ladder-back chair
Kitchen chair
Desk chair 1 2
April
May 3 4 5 6 7 8
Aggregate
production plan
for chair family
200
670
150
120
Figure 16.4
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7. Inventory Record Figure 16.5 Item: C Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements 1 2 3 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases
Week
150
230
120 37
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8. Inventory Record Explanation:
Figure 16.5
Item: C
Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
Explanation:
Gross requirements are the total demand for the two chairs. Projected on-hand inventory in week 1 is – 150
The inventory for each week is calculated from the gross requires, scheduled receipts, and on-hand inventory.
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9. Inventory Record Explanation:
Figure 16.5
Item: C
Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
Explanation:
Gross requirements are the total demand for the two chairs. Projected on-hand inventory in week 1 is – 150 = 117 units.
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10. Inventory Record Figure 16.5 Item: C Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
This series of slides will complete the MRP record by adding in the basic equation for the calculation of projected on-hand inventory. This builds to Figure 16.6.
This slide advances automatically.
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11. Inventory Record = + – Figure 16.5 Item: C
Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
Projected on-hand inventory balance at end of week t
Inventory on hand at end of week t - 1
Gross requirements in week t
Scheduled or planned receipts in week t = + –
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12. Inventory Record = + – Figure 16.5 Item: C
Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
– 3
–153
–273
This slide adds in the remaining on-hand inventory figures prior to the determination of order quantities and timing.
This slide advances automatically.
Projected on-hand inventory balance at end of week t
Inventory on hand at end of week t - 1
Gross requirements in week t
Scheduled or planned receipts in week t = + –
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13. Planned Orders Explanation:
Figure 16.6
Explanation:
Without a new order in week 4, there will be a shortage of three units: – 120 = – 3 units.
Item: C
Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week –3
– 3
–153
– 273
When the on-hand inventory falls below zero it is necessary to plan an order.
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14. Planned Orders Figure 16.6 Item: C Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
This slide advances automatically.
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15. Planned Orders Explanation:
Figure 16.6
Explanation:
Adding the planned receipt brings the balance to
– 120 = 227 units.
Item: C
Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
227
This slide advances automatically.
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16. Planned Orders Explanation:
Figure 16.6
Explanation:
Adding the planned receipt brings the balance to
– 120 = 227 units.
Item: C
Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
227
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17. Planned Orders Explanation:
Figure 16.6
Explanation:
Offsetting for a two-week lead time puts the corresponding planned order release back to week 2.
Item: C
Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
227
The actual order replacement must be offset by the lead time.
This slide advances automatically.
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18. Planned Orders Explanation:
Figure 16.6
Explanation:
Offsetting for a two-week lead time puts the corresponding planned order release back to week 2.
Item: C
Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
227
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19. Planned Orders Explanation:
Figure 16.6
Explanation:
The first planned order lasts until week 7, when projected inventory would drop to – 43.
Item: C
Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
227 77
–43
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20. Planned Orders Explanation:
Figure 16.6
Explanation:
Adding the second planned receipt brings the balance to – 120 = 187.
Item: C
Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
227 77
This slide advances automatically.
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21. Planned Orders Explanation:
Figure 16.6
Explanation:
Adding the second planned receipt brings the balance to – 120 = 187.
Item: C
Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
227 77
187
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22. Planned Orders Explanation:
Figure 16.6
Explanation:
The corresponding planned order release is for week 5.
Item: C
Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
227 77
187
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23. Planned Orders Figure 16.6 Item: C Description: Seat subassembly
Lot Size: 230 units
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
227 77
187
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24. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly
Lot Size: P = 3
Lead Time: 2 weeks
Gross requirements 1 2 3 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases
Week
150
230
117
120 37
The next series of slides develops Figure 16.7 manually if the Instructor wishes to show the details of the process.
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25. Gross requirements for weeks 4, 5, and 6 Inventory at end of week 3
Lot-Sizing Rules – POQ
POQ lot size
Gross requirements for weeks 4, 5, and 6
Inventory at end of week 3
= –
Item: C
Description: Seat subassembly
Lot Size: P = 3
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
This is the basic equation for the POQ.
117
117
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26. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly
Lot Size: P = 3
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
This slide advances automatically.
117
117
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27. Lot-Sizing Rules – POQ (120 + 0 + 150) Item: C
Description: Seat subassembly
Lot Size: P = 3
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
( )
117
117
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28. Lot-Sizing Rules – POQ (120 + 0 + 150) – 117 Item: C
Description: Seat subassembly
Lot Size: P = 3
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
( ) – 117
117
117
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29. Lot-Sizing Rules – POQ (120 + 0 + 150) – 117 = 153 units Item: C
Description: Seat subassembly
Lot Size: P = 3
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
( ) – 117 = 153 units
This slide advances automatically.
117
117
153
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30. Lot-Sizing Rules – POQ (120 + 0 + 150) – 117 = 153 units Item: C
Description: Seat subassembly
Lot Size: P = 3
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
( ) – 117 = 153 units
The first POQ is 153 units.
117
117
153
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31. Lot-Sizing Rules – POQ (120 + 0 + 150) – 117 = 153 units Item: C
Description: Seat subassembly
Lot Size: P = 3
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
( ) – 117 = 153 units
117
117
150
153
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32. Lot-Sizing Rules – POQ (120 + 0 + 150) – 117 = 153 units Item: C
Description: Seat subassembly
Lot Size: P = 3
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
( ) – 117 = 153 units
117
117
150
153
153
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33. Lot-Sizing Rules – POQ (120 + 0) – 0 = 120 units Item: C
Description: Seat subassembly
Lot Size: P = 3
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
( ) – 0 = 120 units
With only two weeks remaining in the planning period we use those for the POQ.
This slide advances automatically.
117
117
150
150
153
120
153
120
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34. Lot-Sizing Rules – POQ Item: C Description: Seat subassembly
Lot Size: P = 3
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
117
117
150
150
153
120
153
120
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35. Lot-Sizing Rules – POQ Figure 16.7
This slide shows the actual screen shot of the Solver output for the POQ example.
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36. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly
Lot Size: L4L
Lead Time: 2 weeks
Gross requirements 1 2 3 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases
Week
150
230
117
120 37
The next series of slides develops Figure 16.8 manually if the Instructor wishes to show the details of the process.
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37. Gross requirements in week 4 Inventory balance at end of week 3
Lot-Sizing Rules – L4L
L4L lot size
Gross requirements in week 4
Inventory balance at end of week 3
= –
Item: C
Description: Seat subassembly
Lot Size: L4L
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
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38. Lot-Sizing Rules – L4L = 120 – 117 = 3 L4L lot size Item: C
= – = 3
L4L lot size
Item: C
Description: Seat subassembly
Lot Size: L4L
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
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39. Lot-Sizing Rules – L4L = 120 – 117 = 3 L4L lot size Item: C
= – = 3
L4L lot size
Item: C
Description: Seat subassembly
Lot Size: L4L
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week 3
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40. Lot-Sizing Rules – L4L = 120 – 117 = 3 L4L lot size Item: C
= – = 3
L4L lot size
Item: C
Description: Seat subassembly
Lot Size: L4L
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
Order quantities will exactly match requirements. 3 3
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41. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly
Lot Size: L4L
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week 3 3
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42. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly
Lot Size: L4L
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week 3
150 3
150
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43. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly
Lot Size: L4L
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
This slide advances automatically. 3
150
120 3
150
120
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44. Lot-Sizing Rules – L4L Item: C Description: Seat subassembly
Lot Size: L4L
Lead Time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week 3
150
120 3
150
120
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45. Lot-Sizing Rules – L4L Figure 16.8
This is the Solver output for Example 16.8.
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46. Lot-Sizing Rule Comparison
The FOQ rule generates high average inventory because it creates remnants.
The POQ rule reduces average on-hand inventory because it does a better job of matching order quantity to requirements.
The L4L rule minimizes inventory investment but maximizes the number of orders placed.
This slide presents the lot sizing rule comparison information from the Chapter.
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47. Safety Stock
Figure 16.9
This is the Solver output showing the impact of safety stock on the example.
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48. Routings and time standards
MRP Outputs
MRP explosion
Material requirements plan
Action notices
Releasing new orders
Adjusting due dates
Priority reports
Dispatch lists
Supplier schedules
Capacity reports
Capacity requirements planning
Finite capacity scheduling
Input-output control
Routings and time standards
Manufacturing resources plan
Performance reports
Cost and price data
Figure 16.10
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49. Bill of Materials C (1) Seat subassembly H (1) Seat frame I (1)
Seat cushion
J (4)
Seat-frame boards
Figure 16.11
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50. MRP Explosion Figure 16.12 Item: Seat subassembly Lot size: 230 units
Lead
time: 2 weeks
Gross requirements
150 1
230
117 2 3
120 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 37
Week
227 77
187
The series starts with the MRP record for the end item.
Figure 16.12
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51. MRP Explosion
Item: Seat subassembly
Lot size: 230 units
Lead
time: 2 weeks
Gross requirements
150 1 2 3
120 4 5 6 7 8
Planned receipts
Planned order releases
Week
230
This is reduced to allow room for subsequent records. The middle of the record has been cut to allow space.
This slide advances automatically.
Figure 16.12
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52. MRP Explosion
Item: Seat subassembly
Lot size: 230 units
Lead
time: 2 weeks
Gross requirements
150 1 2 3
120 4 5 6 7 8
Planned receipts
Planned order releases
Week
230
Item: Seat frames
Lot size: 300 units
Lead
time: 1 week
Gross requirements 1 2 3 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 40
Week
300
Item: Seat cushion
Lot size: L4L
These are the two records for level one items.
Figure 16.12
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53. MRP Explosion Usage quantity: 1 Figure 16.12
Item: Seat subassembly
Lot size: 230 units
Lead
time: 2 weeks
Gross requirements
150 1 2 3
120 4 5 6 7 8
Planned receipts
Planned order releases
Week
230
Item: Seat frames
Lot size: 300 units
Lead
time: 1 week
Gross requirements 1 2 3 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 40
Week
230
300
Item: Seat cushion
Lot size: L4L
Usage quantity: 1
The gross requirements of the level one items are derived from the planned order releases of the level zero item.
Figure 16.12
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54. MRP Explosion Usage quantity: 1 Figure 16.12 Item: Seat subassembly
Lot size: 230 units
Lead
time: 2 weeks
Gross requirements
150 1 2 3
120 4 5 6 7 8
Planned receipts
Planned order releases
Week
230
Item: Seat frames
Lot size: 300 units
Lead
time: 1 week
Gross requirements 1 2 3 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases 40
Week
230
300
Item: Seat cushion
Lot size: L4L
Usage quantity: 1
Figure 16.12
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55. MRP Explosion
Item: Seat subassembly
Lot size: 230 units
Lead
time: 2 weeks
Gross requirements
150 1 2 3
120 4 5 6 7 8
Planned receipts
Planned order releases
Week
230
Item: Seat frames
Lot size: 300 units
Lead
time: 1 week
Gross requirements 1 40 2 3 4 5 6 7 8
Scheduled receipts
Projected on-hand inventory
Planned receipts
Planned order releases
Week
110
230
300
180
Item: Seat cushion
Lot size: L4L
The records are completed in the normal fashion.
Figure 16.12
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56. MRP Explosion
Item: Seat frames
Lot size: 300 units
Lead
time: 1 week
Gross requirements 1 2 3 4 5 6 7 8
Planned receipts
Planned order releases
Week
300
Item: Seat cushion
Lot size: L4L
230
Once again, these are reduced and shortened for clarity.
This slide advances automatically.
Figure 16.12
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57. MRP Explosion
Item: Seat frames
Lot size: 300 units
Lead
time: 1 week
Gross requirements 1 2 3 4 5 6 7 8
Planned receipts
Planned order releases
Week
300
Item: Seat cushion
Lot size: L4L
230
Gross requirements 1 2 3 4 5 6 7 8
Scheduled receipts
Planned receipts
Planned order releases
200
Week
Projected on-hand inventory
Item: Seat-frame boards
Lot size: 1500 units
Lead
time: 1 week
The processing of a level two item follows as before.
Figure 16.12
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58. MRP Explosion Usage quantity: 4 Figure 16.12 Item: Seat frames
Lot size: 300 units
Lead
time: 1 week
Gross requirements 1 2 3 4 5 6 7 8
Planned receipts
Planned order releases
Week
300
Item: Seat cushion
Lot size: L4L
230
Usage quantity: 4
Gross requirements 1 2 3
1200 4 5 6 7 8
Scheduled receipts
Planned receipts
Planned order releases
200
Week
Projected on-hand inventory
Item: Seat-frame boards
Lot size: 1500 units
Lead
time: 1 week
Figure 16.12
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59. MRP Explosion Figure 16.12 Item: Seat frames Lot size: 300 units Lead
time: 1 week
Gross requirements 1 2 3 4 5 6 7 8
Planned receipts
Planned order releases
Week
300
Item: Seat cushion
Lot size: L4L
230
Gross requirements 1
200 2 3
1200 4 5 6 7 8
Scheduled receipts
Planned receipts
Planned order releases
Week
500
1500
Projected on-hand inventory
Item: Seat-frame boards
Lot size: 1500 units
Lead
time: 1 week
Figure 16.12
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60. Input-Output Report Workstation: Rough Mill Week: 32
Figure 16.14
Workstation: Rough Mill Week: 32
Tolerance:  25 hours
Week Ending
Planned
Actual
Cumulative deviation – 15 – 10 –
Planned
Actual
Cumulative deviation – 5 –- 10 – 20 – 32
Inputs
Outputs
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61. Input-Output Report Explanation:
Workstation: Rough Mill Week: 32
Tolerance:  25 hours
Week Ending
Planned
Actual
Cumulative deviation – 15 – 10 –
Planned
Actual
Cumulative deviation – 5 – 10 – 20 – 32
Inputs
Outputs
Explanation:
Cumulative deviations between – 25 hours and + 25 hours are allowed.
Figure 16.14
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62. Input-Output Report Explanation:
Figure 16.14
Workstation: Rough Mill Week: 32
Tolerance:  25 hours
Week Ending
Planned
Actual
Cumulative deviation – 15 – 10 –
Planned
Actual
Cumulative deviation – 5 – 10 – 20 – 32
Inputs
Outputs
Explanation:
Cumulative deviation exceeds lower tolerance limit, indicating actual hours of output have fallen too far below planned hours of output and some action is required.
Cumulative deviations between – 25 hours and + 25 hours are allowed.
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63. Input-Output Report Workstation: Rough Mill Week: 32
Tolerance:  25 hours
Week Ending
Planned
Actual
Cumulative deviation – 15 – 10 –
Planned
Actual
Cumulative deviation – 5 –- 10 – 20 – 32
Inputs
Outputs
Backlog 25
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64. Input-Output Report Workstation: Rough Mill Week: 32
Tolerance:  25 hours
Week Ending
Planned
Actual
Cumulative deviation – 15 – 10 –
Planned
Actual
Cumulative deviation – 5 –- 10 – 20 – 32
Inputs
Outputs
Backlog 25 5
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65. Input-Output Report Workstation: Rough Mill Week: 32
Tolerance:  25 hours
Week Ending
Planned
Actual
Cumulative deviation – 15 – 10 –
Planned
Actual
Cumulative deviation – 5 –- 10 – 20 – 32
Inputs
Outputs
Backlog 25
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66. Input-Output Report Workstation: Rough Mill Week: 32
Tolerance:  25 hours
Week Ending
Planned
Actual
Cumulative deviation – 15 – 10 –
Planned
Actual
Cumulative deviation – 5 –- 10 – 20 – 32
Inputs
Outputs
Backlog 25
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67. Input-Output Report Workstation: Rough Mill Week: 32
Tolerance:  25 hours
Week Ending
Planned
Actual
Cumulative deviation – 15 – 10 –
Planned
Actual
Cumulative deviation – 5 –- 10 – 20 – 32
Inputs
Outputs
Backlog 25
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68. MRP II Figure 16.15 Inventory records Inventory transactions
Bills of materials
Routings
Time standards
MRP
explosion
Master production schedule
Customer orders
Forecasts
Material requirements plan
Manufacturing resource plan
Cost and
financial data
The complete system includes the various reports for different areas of the organization.
Purchasing reports
Financial/ accounting reports
Sales and marketing reports
Human resource reports
Manufacturing reports
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69. Solved Problem 1 LT = 2 LT = 3 A B (3) C (1) LT = 1 G (1) LT = 6 D (1)
F (1)
This slide supports Solved Problem 1 at the end of the Chapter.
Figure 16.18
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70. Solved Problem 2 A B (1) C (2) D (1) LT = 2 LT = 1 LT = 3
Figure 16.19
TABLE 16.1 INVENTORY RECORD DATA
ITEM
DATA CATEGORY B C D
Lot-sizing rule POQ (P=3) L4L FOQ = 500 units
Lead time 1 week 2 weeks 3 weeks
Scheduled receipts None 200 (week 1) None
Beginning (on-hand)
inventory
This series of slides support Solved Problem 2 at the end of the Chapter.
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71. Solved Problem 2 Figure 16.20 Item: B Lot size: POQ (P = 3)
Description: Lead time: 1 week
Week 1 2 3 4 5 6 7 8 9 10
Gross requirements
100
200
120
180 60
Scheduled receipts
Projected on-hand inventory
These next three slides show the completed MRP records from Figure We start with Item B which follows from the product structure tree in Figure The text has a slightly different sequence due to page layout constraints. 20 20
200
200
240 60
Planned receipts
280
360
Planned order releases
280
360
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72. Solved Problem 2 Figure 16.20 Item: C Lot size: L4L
Description: Lead time: 2 weeks
Week 1 2 3 4 5 6 7 8 9 10
Gross requirements
200
400
240
360
120
Scheduled receipts
200
Projected on-hand inventory
200
Planned receipts
400
240
360
120
Planned order releases
400
240
360
120
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73. Solved Problem 2 Figure 16.20 Item: D Lot size: FOQ = 500 units
Description: Lead time: 3 weeks
Week 1 2 3 4 5 6 7 8 9 10
Gross requirements
400
240
360
120
Scheduled receipts
Projected on-hand inventory
425
425 25 25
285
425
305
305
305
360
305
Planned receipts
500
500
Planned order releases
500
500
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