MRP System Overview and Uncertainty Types

Time-Phased schedule for all intermediate assemblies and component parts

They do not reflect the key independent demand assumption of constant demand, they are discrete, and they are considered lumpy.

<p>Discrete</p> Signup and view all the answers

<p>Should use increasingly complex procedures to reduce inventory-related costs, local optimization impacts, and increased NR lumpiness with other procedures.</p> Signup and view all the answers

<p>How to group time-phased requirement data into schedule of replenishment orders while minimizing ordering and holding costs.</p> Signup and view all the answers

<p>NR must be available at the beginning of each period, all future NR must be met with no back orders, ordering decisions are made at certain intervals, offsets for manufacturing lead times, and component requirements satisfied uniformly.</p> Signup and view all the answers

<p>Demand uncertainty and supply uncertainty.</p> Signup and view all the answers

<p>Timing uncertainty and quantity uncertainty.</p> Signup and view all the answers

<p>Demand timing uncertainty, demand quantity uncertainty, supply timing uncertainty, supply quantity uncertainty.</p> Signup and view all the answers

<p>Occurs when there is a change in promise date to a customer or change in planned orders for higher-level items.</p> Signup and view all the answers

<p>Occurs when MPS varies to reflect changes in customer orders or demand forecasts.</p> Signup and view all the answers

<p>Variations in vendor lead time or shop floor time.</p> Signup and view all the answers

<p>Shortages of lower-level items or production lots incurring scrap losses/overruns.</p> Signup and view all the answers

<p>Specify safety stock and safety lead time.</p> Signup and view all the answers

<p>When there is demand or supply timing uncertainty.</p> Signup and view all the answers

<p>When there is demand or supply quantity uncertainty.</p> Signup and view all the answers

<p>Supply timing uncertainty and demand quantity uncertainty.</p> Signup and view all the answers

<p>In calculating the lot size to start into production.</p> Signup and view all the answers

<p>The quantity shown on the shop paper is the starting quantity and relates to using safety stock for quantity uncertainty buffering.</p> Signup and view all the answers

<p>Reducing uncertainty to an absolute minimum and providing for slack in the production system.</p> Signup and view all the answers

<p>Increase demand forecasts accuracy, develop effective procedures, freeze MPS, and have responsive shop floor control.</p> Signup and view all the answers

<p>Production slack definition: additional time, labor, machine capacity needed for planned and unplanned production.</p> Signup and view all the answers

<p>Nervousness can be defined as significant changes in plans occurring with minor changes in higher-level MRP records or MPS.</p> Signup and view all the answers

<p>Planned orders released prematurely, in unplanned quantities, or due to changes in MRP parameter values.</p> Signup and view all the answers

<p>Reduce the causes of changes in MRP nervousness by introducing stability through time fences or freezing.</p> Signup and view all the answers

<p>If nervousness still exists, use different lot-sizing procedures at different product structure levels.</p> Signup and view all the answers

<p>Using firm planned orders in MRP records to stabilize requirements for lower-level systems.</p> Signup and view all the answers

<p>FOQ passes along only order timing changes, dampening lot-size induced nervousness.</p> Signup and view all the answers

<p>Nervousness in execution can influence behavior, leading users to make defensive decisions.</p> Signup and view all the answers

<p>Passing information to users less often and having well-trained users to make intelligent decisions.</p> Signup and view all the answers