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Chapter 15 - Resource Planning

Chapter 15 - Resource Planning. Demand Patterns. 2000 — 1500 — 1000 — 500 — 0. 2000 — 1500 — 1000 — 500 — 0. Rims. Rims. Bicycles. | | | | | | | | | | 1 5 10 Day. | | | | | | | | | | 1 5 10 Day.

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Chapter 15 - Resource Planning

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  1. Chapter 15 -Resource Planning

  2. Demand Patterns

  3. 2000 — 1500 — 1000 — 500 — 0 2000 — 1500 — 1000 — 500 — 0 Rims Rims Bicycles | | | | | | | | | | 1 5 10 Day | | | | | | | | | | 1 5 10 Day (a) (b) Figure 15.1 Demand Patterns

  4. 2000 — 1500 — 1000 — 500 — 0 2000 — 1500 — 1000 — 500 — 0 Rims Rims Bicycles Reorder point | | | | | | | | | | 1 5 10 Day | | | | | | | | | | 1 5 10 Day Demand Patterns (a) (b) Figure 15.1

  5. 2000 — 1500 — 1000 — 500 — 0 Order 1000 on day 3 Rims Rims Bicycles Reorder point | | | | | | | | | | 1 5 10 Day | | | | | | | | | | 1 5 10 Day Figure 15.1 2000 — 1500 — 1000 — 500 — 0 Demand Patterns (a) (b)

  6. 2000 — 1500 — 1000 — 500 — 0 Order 1000 on day 3 Rims Rims Bicycles Reorder point | | | | | | | | | | 1 5 10 Day | | | | | | | | | | 1 5 10 Day Figure 15.1 2000 — 1500 — 1000 — 500 — 0 Demand Patterns (a) (b)

  7. 2000 — 1500 — 1000 — 500 — 0 Order 1000 on day 3 Order 1000 on day 8 Rims Rims Bicycles Reorder point | | | | | | | | | | 1 5 10 Day | | | | | | | | | | 1 5 10 Day Figure 15.1 2000 — 1500 — 1000 — 500 — 0 Demand Patterns (a) (b)

  8. 2000 — 1500 — 1000 — 500 — 0 2000 — 1500 — 1000 — 500 — 0 Order 1000 on day 3 Order 1000 on day 8 Rims Rims Bicycles Reorder point | | | | | | | | | | 1 5 10 Day | | | | | | | | | | 1 5 10 Day Figure 15.1 Demand Patterns (a) (b)

  9. 2000 — 1500 — 1000 — 500 — 0 Order 1000 on day 3 Order 1000 on day 8 Rims Rims Bicycles Reorder point | | | | | | | | | | 1 5 10 Day | | | | | | | | | | 1 5 10 Day (a) (b) Figure 15.1 2000 — 1500 — 1000 — 500 — 0 Demand Patterns

  10. Material Requirements Plan Inputs

  11. Engineering and process designs Bills of materials Material Requirements Plan Inputs Figure 15.2

  12. Authorized master production schedule Other sources of demand Engineering and process designs Bills of materials Material Requirements Plan Inputs Figure 15.2

  13. Authorized master production schedule Other sources of demand Engineering and process designs Inventory transactions Inventory records Bills of materials Material Requirements Plan Inputs Figure 15.2

  14. Authorized master production schedule Other sources of demand Engineering and process designs Inventory transactions Inventory records MRP explosion Bills of materials Material Requirements Plan Explosion Figure 15.2

  15. Authorized master production schedule Other sources of demand Engineering and process designs Inventory transactions Inventory records MRP explosion Bills of materials Material requirements plan Material Requirements Plan Output Figure 15.2

  16. Bill of Materials

  17. Bill of Materials Back slats Seat cushion Leg supports Seat-frame boards Back legs Front legs A Ladder-back chair Figure 15.3

  18. A Ladder-back chair Back slats Seat cushion B (1) Ladder-back subassembly C (1) Seat subassembly D (2) Front legs E (4) Leg supports Leg supports Seat-frame boards F (2) Back legs G (4) Back slats H (1) Seat frame I (1) Seat cushion Back legs Front legs A Ladder-back chair J (4) Seat-frame boards Bill of Materials Figure 15.3

  19. Master Production Schedule

  20. Master Production Schedule April May 1 2 3 4 5 6 7 8 Ladder-back chair 150 150 Kitchen chair 120 120 Desk chair 200 200 200 200 Aggregate production plan 670 670 for chair family Figure 15.4

  21. Inventory Record

  22. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 Planned receipts Planned order releases Figure 15.5 Inventory Record

  23. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 Planned receipts Explanation: Gross requirements are the total demand for the two chairs. Projected on-hand inventory in week 1 is 37 + 230 – 150 Planned order releases Figure 15.5 Inventory Record

  24. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 Planned receipts Explanation: Gross requirements are the total demand for the two chairs. Projected on-hand inventory in week 1 is 37 + 230 – 150 = 117 units. Planned order releases Figure 15.5 Inventory Record

  25. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 Planned receipts Planned order releases Figure 15.6 Inventory Record

  26. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 Planned receipts Scheduled or planned receipts in week t Projected on-hand inventory balance at end of week t Inventory on hand at end of week t - 1 Gross requirements in week t = + – Planned order releases Figure 15.5 Inventory Record

  27. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 – 3 – 3 –153 –273 –273 Planned receipts Scheduled or planned receipts in week t Projected on-hand inventory balance at end of week t Inventory on hand at end of week t - 1 Gross requirements in week t = + – Planned order releases Figure 15.5 Inventory Record

  28. Explanation: Without a new order in week 4, there will be a shortage of three units: 117 + 0 + 0 – 120 = – 3 units. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 –3 – 3 –153 – 273 – 273 Planned receipts Planned order releases Figure 15.6 Planned Orders

  29. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 Planned receipts Planned order releases Figure 15.6 Planned Orders

  30. Explanation: Adding the planned receipt brings the balance to 117 + 0 + 230 – 120 = 227 units. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 227 Planned receipts 230 Planned order releases Figure 15.6 Planned Orders

  31. Explanation: Adding the planned receipt brings the balance to 117 + 0 + 230 – 120 = 227 units. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 227 Planned receipts 230 Planned order releases Figure 15.6 Planned Orders

  32. 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 Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 227 Planned receipts 230 Planned order releases 230 Figure 15.6 Planned Orders

  33. 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 Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 227 Planned receipts 230 Planned order releases 230 Figure 15.6 Planned Orders

  34. 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 Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory –43 37 117 117 117 77 227 227 Planned receipts 230 Planned order releases 230 Figure 15.6 Planned Orders

  35. Explanation: Adding the second planned receipt brings the balance to 77 + 0 + 230 – 120 = 187. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 77 227 227 Planned receipts 230 230 Planned order releases 230 Figure 15.6 Planned Orders

  36. Explanation: Adding the second planned receipt brings the balance to 77 + 0 + 230 – 120 = 187. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 37 117 117 117 77 227 227 Planned receipts 230 230 Planned order releases 230 Figure 15.6 Planned Orders 187

  37. Explanation: The corresponding planned order release is for week 5. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 187 37 117 117 117 77 227 227 Planned receipts 230 230 Planned order releases 230 230 Figure 15.6 Planned Orders

  38. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 0 0 120 0 150 120 0 Scheduled receipts 230 0 0 0 0 0 0 0 Projected on-hand inventory 187 37 187 117 117 117 77 227 227 Planned receipts 230 230 Planned order releases 230 230 Figure 15.6 Planned Orders

  39. Lot-Sizing Rules

  40. Figure 15.7 Lot-Sizing Rules — POQ Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 120 150 120 Scheduled receipts 230 Projected on-hand inventory 37 117 117 117 Planned receipts Planned order releases

  41. Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks POQ lot size Gross requirements for weeks 4, 5, and 6 Inventory at end of week 3 = – Week 1 2 3 4 5 6 7 8 Gross requirements 150 120 150 120 Scheduled receipts 230 Projected on-hand inventory 37 117 Planned receipts Planned order releases Figure 15.7 Lot-Sizing Rules — POQ 117 117

  42. Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 120 150 120 Scheduled receipts 230 Projected on-hand inventory 37 117 Planned receipts Planned order releases Figure 15.7 Lot-Sizing Rules — POQ 117 117

  43. Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 120 150 120 Scheduled receipts 230 Projected on-hand inventory 37 117 Planned receipts Planned order releases Figure 15.7 Lot-Sizing Rules — POQ (120 + 0 + 150) 117 117

  44. Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 120 150 120 Scheduled receipts 230 Projected on-hand inventory 37 117 Planned receipts Planned order releases Figure 15.7 Lot-Sizing Rules — POQ (120 + 0 + 150) – 117 117 117

  45. Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 120 150 120 Scheduled receipts 230 Projected on-hand inventory 37 117 Planned receipts Planned order releases Figure 15.7 Lot-Sizing Rules — POQ (120 + 0 + 150) – 117 = 153 units 117 117 153

  46. Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 120 150 120 Scheduled receipts 230 Projected on-hand inventory 37 117 Planned receipts Planned order releases Figure 15.7 Lot-Sizing Rules — POQ (120 + 0 + 150) – 117 = 153 units 117 117 153

  47. Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 120 150 120 Scheduled receipts 230 Projected on-hand inventory 37 117 Planned receipts Planned order releases Figure 15.7 Lot-Sizing Rules — POQ (120 + 0 + 150) – 117 = 153 units 150 117 117 153

  48. Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 120 150 120 Scheduled receipts 230 Projected on-hand inventory 37 117 Planned receipts Planned order releases Figure 15.7 Lot-Sizing Rules — POQ (120 + 0 + 150) – 117 = 153 units 150 117 117 153 153

  49. Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 120 150 120 Scheduled receipts 230 Projected on-hand inventory 37 117 Planned receipts Planned order releases Figure 15.7 Lot-Sizing Rules — POQ (120 + 0) – 0 = 120 units 150 0 0 0 150 117 117 153 120 153 120

  50. Item: C Description: Seat subassembly Lot Size: P = 3 Lead Time: 2 weeks Week 1 2 3 4 5 6 7 8 Gross requirements 150 120 150 120 Scheduled receipts 230 Projected on-hand inventory 37 117 Planned receipts Planned order releases Figure 15.7 Lot-Sizing Rules — POQ 150 0 0 0 150 117 117 153 120 153 120

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