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Inventory status data: Planned order releases. The inventory record: consist of
- Gross requirements: The total period demand for the item
- Scheduled receipts: An open order with an assigned due date
- Projected available: The projected inventory balance for the period
- Planned orders: Quantities & released dates suggested by the MRP system
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3 rd. Industrial Eng. Chapter 3 Production Planning & control
2011- 2012 Dr. May George
Bill Of Materials:
BOM: a listing of all of the raw materials, parts, subassemblies, and assemblies,
purchased and manufactured needed to produce one unit of a product.
Product structure tree: Visual depiction of the requirements in a bill of materials,
where all components are listed by levels.
MRP System
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3 rd. Industrial Eng. Chapter 3 Production Planning & control
2011- 2012 Dr. May George
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3 rd. Industrial Eng. Chapter 3 Production Planning & control
2011- 2012 Dr. May George
Time Zones
1-Frozen Zone
In forecasting, this is the period in which no changes can be made to scheduled work
orders based on changes in demand. Use of a frozen zone provides stability in the
manufacturing schedule.
2- Firm planned order (FPO):
A planned order that can be frozen in quantity and time. The computer is not
allowed to change it automatically; this is the responsibility of the planner in charge
of the item that is being planned. This technique can aid planners working with MRP
systems to respond to material and capacity problems by firming up selected planned
orders. In addition, firm planned orders are the normal method of stating the master
production schedule.
3- Slushy Zone
Capacity and material are committed to less extent. Tradeoffs must be met between
marketing and manufacturing
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3 rd. Industrial Eng. Chapter 3 Production Planning & control
2011- 2012 Dr. May George
4- Liquid Zone
Any changes can be made to the MPS
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3 rd. Industrial Eng. Chapter 3 Production Planning & control
2011- 2012 Dr. May George
The MPS row shows when replenishment shipments need to arrive to avoid a stock
out (negative projected available just to show the calculation)
W eek BI 1 2 3 4 5 6 7 8 9 10 11 12
F o re c a s t 50 50 50 50 75 75 75 75 50 50 50 50
P ro je c t e d a va ila b le 110 60 10 -4 0
MPS
W eek BI 1 2 3 4 5 6 7 8 9 10 11 12
F o re c a s t 50 50 50 50 75 75 75 75 50 50 50 50
P ro je c t e d a va ila b le 110 60 10 85 35 -4 0
MPS 125
W eek BI 1 2 3 4 5 6 7 8 9 10 11 12
F o re c a s t 50 50 50 50 75 75 75 75 50 50 50 50
P ro je c te d a va ila b le 110 60 10 85 35 85 10 -6 5
W eek BI 1 2 3 4 5 6 7 8 9 10 11 12
F o re c a s t 50 50 50 50 75 75 75 75 50 50 50 50
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3 rd. Industrial Eng. Chapter 3 Production Planning & control
2011- 2012 Dr. May George
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3 rd. Industrial Eng. Chapter 3 Production Planning & control
2011- 2012 Dr. May George
C A- sub
X: end
E B- sub assemble product
product
5 weeks 4 3 2 1 0
Fig. (3) lead times for Product X
Backward scheduling: start at the due date and schedule backwards to determine when
to begin work. If an order for clipboards is due by period three, we should start
production now. See the example:
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3 rd. Industrial Eng. Chapter 3 Production Planning & control
2011- 2012 Dr. May George
Example Comparing Lot Size Rules: Three common lot sizing rules used within MRP
Systems are fixed order quantity (FOQ), lot for lot (L4L), and period order quantity
(POQ). Cost comparison is based on Inventory holding costs ($0.10 per period) and
ordering cost ($25 per order). In this example POQ is best at $133.50.
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3 rd. Industrial Eng. Chapter 3 Production Planning & control
2011- 2012 Dr. May George
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