Chapter 12: MRP & ERP

What are 3 inputs of MRP?

1. Master schedule 2. The bill of material 3. Inventory records

MRP is designed to answer what 3 questions?

1. What is needed? 2. How much is needed? 3. When is it needed?

What is backflushing?

A procedure in which and end item's BOM is periodically exploded to determine the quantities for the various components that were used to make the item, eliminating the need to collect detailed usage information on the production floor.

BOM

Bill of Materials - contains a listing of all the assemblies, sub assemblies, parts, and raw materials that are needed to produce one unit of a finished product.

Lot Sizing

Determining a lot size to order or to produce is an important issue in inventory management for both independent and dependent demand items.

What is a huge advantage to MRP?

Does not require safety stock below the end item level.

ERP

Enterprise Resource Planning

What refers to stored information on the status of each item by time period, called time buckets?

Inventory Records

What is a computer-based system that translates the finished product requirements of the master schedule into time-phased requirements?

MRP

MRP II

Manufacturing Resources Planning

MRP

Material Requirements Planning

Did MRP II replace or improve MRP?

No it did neither, it expanded the scope of materials planning to include capacity requirements planning in the planning process.

ERP represents an expanded effort to integrate ___________ record keeping that will permit information sharing.

Standardize

Safety Stock

The inventory a company holds above normal needs as a buffer against delays in receipt of supply or changes in customer demand.

Master Schedule

states which end items are to be produced, when they are needed, and in what quantities.