Order and materials planning Flashcards
Basic issues in materials planning?
For whihc items must new orders be planned?
How large must the quantity be?
When does the delivery need to arrive?
When does the order need to be placed?
Independant vs dependant demand?
Dependant: Can be traced to the demand of another item, eg part to be assembled for end product,
independant: Item whihc has no direct relation to other items. eg spare parts.
dependant or not sets different conditions in the mp
MP methods?
Re-order point run out time planning periodic ordering system material requirement planning Kanban
Re-order point = ?
Safety stock+demand*lead time
Continous or periodic review?
Continous: Stock levels checked continously/ after every trnsaction= quick response
periodic: Stock levels checked in set time intervals.
Re-order point environments?
Independent demand(mainly) Finnished goods stock Even and predictable demand Low value items(screws) Small order sizes and quick deliveries access to capacity no probs
Run ouut time = ?
Stock on hand/demand per period
Run out time rule?
if (run out time
Periodic ordering system means?
PLanned orders with fixed time intervals but varying sizes.
How to periodic order system?
Decide target value and order up to that
Periodic order system environments
Independent demand mainly Finnished good stock Frequent and continous demand small order sizes and short lead times acces to capacity not a major problem coordination of items
MRP calculations are based on ?
Bill of materials
Master production scheduele data
Inventory data.
What’s pegging
Show parents creating demand
Uses “where used” logic to determine demand
MRP environments?
Dependant demand
Independant demand-especially with seasonal variations
High basic data quality
Traditional mrp does not account for?
Capacity
