Chapter 14

Operations
Management

Heizer/Render

Session – 10 & 11
JIT (Demand Flow) MRP
 As needed …  In anticipation …
 “Pull”  “Push”
 Low variability  High variability
 High predictability  High predictability
(by definition) (Only when Inventory
buffers low
 Kanban predictability)

 Computer-
intensive
 Howmuch of an item is needed to meet
demand? When?

 What
parts and components are required?
When?

 When to order parts and components?

Dependent / Independent Demand?
 Dependent Demand
 Production (or procurement) of parts and materials is
directly linked to demand for the final product

 Time-phased Scheduling
 Parts and components must be ordered in advance to
accommodate lead times between order placement and
receipt
Demand Characteristics for Finished Products and Their Components

Independent demand Dependent demand

100 x 1 =
100 tabletops

100 tables
100 x 4 = 400 table legs

400 – Continuous demand Discrete demand

400 –
300 –
No. of tables

300 –
No. of tables
200 –
200 –
100 –
100 –

1 2 3 4 5
Week M T W Th F M T W Th F

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