Krajewski Chapter 4

Material Requirements Plan LOT SIZE = 230 Units
SEAT SUBASSEMBLY LEAD TIME = 2 Weeks

Weeks 1 2 3 4 5 6 7 8
Gross
GrossReqirements
Requirements 150 120 150 120
Scheduled Receipts 230
Projected on-hand: 37 117 117 117 227 227 77 187 187
Planned Receipts 230 230
Planned order Releases 230 230
LOT SIZE = 300

Seat Frames LEAD TIME = 1 Week
Weeks 1 2 3 4 5 6 7 8
Gross
GrossReqirements
Requirements 230 230
Projected on-hand Inv. = 40 40 110 110 110
Planned Receipts 300
Planned order Releases 300
110
40
Lot40is on-hand
on
of carried
hand
300 inisbe
plus
must inventory
300 untilprevious
in receipts
scheduled
carried from week
to start5production
minus when
plan tomore
demand isweek
ofin230
week needed.
= 110
one. 4 and
LOT SIZE = L4L
arrives as planned receipt in week 5.
Seat Cushions LEAD TIME = 1 week
Weeks 1 2 3 4 5 6 7 8
Gross
GrossReqirements
Requirements 230 230
Scheduled Receipts
Projected on-hand Inv. = 0
Planned Receipts
Planned order Releases
© 2007 Pearson Education
Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Gross Requirements 150 120 150 120
LOT SIZE = 300

Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Gross Requirements 230 230
Projected on-hand Inv. = 40 40 110 110 110 180 180 180 180
The 180 infor

On-Hand inventory
week 5 is 300
carried until- 230
+ 110 the next
= 180gross LOT SIZE = L4L
requirements.
Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Scheduled Receipts
Projected on-hand Inv. = 0
Planned Receipts
Planned
© 2007 orderEducation
Pearson Releases
Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Gross Requirements 150 120 150 120
LOT SIZE = 300

Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Planned
Two order
planned
Projected releases
order
on-hand are sized
releases
inventory of 230tounits
remains gross requirements.
are
at zero.scheduled. LOT SIZE = L4L
Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Scheduled Receipts
Planned
© 2007 orderEducation
Pearson Releases 230 230
Weeks 1 2 3 4 5 6 7 8
Gross
GrossReqirements
Requirements 150 120 150 120 0
LOT SIZE = 300

Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Gross requirements for seat-frame boards will be 1200 units

LOT(orSIZE
4 x=300)
L4L in
week 3.
Weeks 1 2 3 4 5 6 7 8
Gross Reqirements
Scheduled Receipts
Planned
© 2007 order Education
Pearson Releases 230 230
Other
Important Reports
 Action notice: A computer-generated memo
alerting planners about releasing new orders and
adjusting the due dates of scheduled receipts.
 Capacity requirements planning (CRP): A
technique used for projecting time-phased capacity
requirements for workstations; its purpose is to
match the material requirements plan with the
capacity of key processes.
 Manufacturing resource planning (MRP II): A
system that ties the basic MRP system to the
company’s financial system and to other core and
supporting processes.
Item A’s MPS and BOM
Application 15.5

Inventory Data
Application 15.5

Item D
Application 15.5

Item B
Application 15.5

Item C
Application 15.5

Drum-Buffer-Rope System
 Drum-Buffer-Rope (DBR): A planning and control
system that regulates the flow of work-in-process
materials at the bottleneck or the capacity
constrained resource (CCR) in a productive system.
Drum-Buffer-Rope System with a Capacity Constrained Resource (CCR)
Market Demand
650 units/week

Drum-Buffer-Rope System
in Practice
 The U.S. Marine Corps Maintenance Center in
Albany, Georgia, overhauls and repairs vehicles
used by the Corps.
 Repairs to equipment can vary tremendously at the
U.S. Marine Corps Maintenance Center in Albany,
Georgia.
 The center struggled to keep up with its repairs until
managers implemented the simplified form of a
drum-buffer-rope system.
 The result? Repair times fell from 167 days to just
58 days, on average.
Resource Planning for
Service Providers
 Dependent demand for services

Restaurant
Airlines
Hospitals
Hotels
 Bill of Resources: A record of a firm’s
parent-component relationships and all of
the materials, equipment time, staff, and
other resources.
Level 1
Discharge
Bill of Resources (BOR)

Level 2
A record of a service firm’s parent– Intermediate care
component relationships and all of the

materials, equipment time, staff, and Level 3
Postoperative care
other resources associated with them, (Step down)
including usage quantities.

Level 4
Postoperative care
(Intensive)
BOR for Treating an Level 5

Aneurysm Surgery
Level 6
Preoperative care Level 6
(Angiogram) Preoperative care
(Angiogram)
Level 7
Preoperative care
Pharmacy (Testing)
Nurse MD Therapy Bed Lab Kitchen
(10
(6 hr) (1 hr) (1 hr) (24 hr) (3 tests) (1 meal)
medicines)

Solved Problem 1
If there is no existing
A
inventory, how many
LT = 1 units of items G, E, and
D must be purchased to
produce five units of end
B (3) C (1) item A?
LT = 2 LT = 3
D (1) E (2) F (1) D (1)
LT = 3 LT = 6 LT = 1 LT = 3
5 units of item
G (1) G
LT = Lead time
LT = 3 30 units of item E
20 units of item D
Solved Problem 3
A
The MPS for product A calls for the assembly
department to begin final assembly according LT = 2
to the following schedule: 100 units in week 2;
200 units in week 4; 120 units in week 6; 180
units in week 7; and 60 units in week 8. B (1) C (2)
Develop a material requirements plan for the
next eight weeks for items B, C, and D.
LT = 1 LT = 2
ITEM
DATA CATEGORY B C D D (1)
Lot-sizing rule POQ (P=3) L4L FOQ = 500 units
Lead time 1 week 2 weeks 3 weeks LT = 3
Scheduled receipts None 200 (week 1) None
Beginning (on-hand) 20 0 425
inventory

Solved Problem 3
Item: B Lot size: POQ (P = 3)
Description: Lead time: 1 week
Week
1 2 3 4 5 6 7 8 9 10
Gross
100 200 120 180 60
requirements
Scheduled
receipts
Projected
on-hand 20 20 200 200 0 0 240 60 0 0 0
inventory
Planned 280 360
receipts
Planned
order 280 360
releases
Solved Problem 3
Item: C Lot size: L4L
Description: Lead time: 2 weeks
Week
1 2 3 4 5 6 7 8 9 10
Gross
200 400 240 360 120
requirements
Scheduled
200
receipts
Projected
on-hand 0 200 0 0 0 0 0 0 0 0 0
inventory
Planned 400 240 360 120
receipts
Planned
order 400 240 360 120
releases
Solved Problem 3
Item: D Lot size: FOQ = 500 units
Description: Lead time: 3 weeks
Week
1 2 3 4 5 6 7 8 9 10
Gross
400 240 360 120
requirements
Scheduled
receipts
Projected
on-hand 425 425 25 25 285 425 305 305 305 360 305
inventory
Planned 500 500
receipts
Planned
order 500 500
releases

Krajewski Chapter 4

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Material Requirements Plan LOT SIZE = 230 Units

SEAT SUBASSEMBLY LEAD TIME = 2 Weeks

LOT SIZE = 300

LOT SIZE = 300

The 180 infor

LOT SIZE = 300

LOT SIZE = 300

Gross requirements for seat-frame boards will be 1200 units

© 2007 Pearson Education

© 2007 Pearson Education

© 2007 Pearson Education

© 2007 Pearson Education

© 2007 Pearson Education

Drum-Buffer-Rope System with a Capacity Constrained Resource (CCR)

© 2007 Pearson Education

 Dependent demand for services

Bill of Resources (BOR)

component relationships and all of the

including usage quantities.

BOR for Treating an Level 5

© 2007 Pearson Education

D (1) E (2) F (1) D (1)

© 2007 Pearson Education

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