MRP and ERP CH 15 Flashcards
What is the difference between Independent and Dependent demand?
Dependent demand is demand for items that are subassys or components to be used in the production of finished goods.
Independent demand is uncertain. It is usually the finished good that is made up of the dependent demand items.
When is MRP appropriate?
when you need to answer: What is needed? How much is needed? and When?
What is a master schedule?
It states which items are to be produced, when they are needed, and in what quantities.
BOM
a bill of materials contains a listing of all assemblies and parts that are needed to produce one unit of finished products.
How is safety stock included in material requirements plan?
theoretically it should not be needed besides the end item.
practically, there may be exceptions such as a bottleneck operation or varying scrap rates causing shortages downstream.
What is meant by the term safety time?
Instead of safety stock, safety time is sometime used to indicate how long a certain dependent product needs to be made to avoid waiting for this product downstream
Requirements for effective MRP
- Must have a computer system
- Must have ACCURATE BOM
- Must have a good record of inventory
Most important topic is accuracy. If you do not have accurate BOM or accurate inventory, you have no chance to be successful with MRP.
How does MRP get used in services?
Product service-package: catering meals for large group of persons.
Lare scale renovations to a big hotel or venue - you must schedule all items accordingly.
What is ERP
Enterprise resource planning is an integration of financial, mfg, and human resources on a single computer system. It is an effort to permit information sharing between various departments.
What are the three main reasons why companies undertake ERP?
Integrate financial data
Standardize manufacturing processes
Standardize HR information
