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Welcome toColorado Technical University

SCM310-1502B-01 : Material and Inventory Management Wednesday 5/27/2015.

Your course instructor isDavid Makhanlall PhD

This is our Phase 2 Chat.

SCM310-1502B-01: Quality and Supply Chain Management

This screen will remain on “Pause” until our Chat gets started in a few minutes.

Chat Details: SMC310

Tuesday late afternoon& Wednesday morning.

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Questions & Answers

How may I help You?

Agenda for Wednesday 5/27/2015.

Major assignments review for Phase 1. All assignments are submitted in the CTU Course (left toolbar) Submit assignments.

• Phase 2: Assignment 1: DB1: Our 2nd Assignment: TWO PARTS.

Part A:Your personal response to “the pros and cons of establishing a demand-based ordering system, sometimes referred to as just in time.”

(due by Wednesday 5/27/2015).

Part B: Two detailed comments to classmates’ postings:

(due by Sunday 5/31/2015)

• Phase 2: Assignment 3: IP: Our 3rd Assignment: Essay “Use the provided MRP template to develop a 6-week manufacturing resource plan (MRP).”

(due Mon. 6/1/2015).

Please go to “Course Home”, and scroll down to the bottom of the screen to “Instructor Files” and note the sample essays.

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Quality is an On-Going Process

in Any Company

This is reinforced by

Internal Processes

Supplier Initiatives.

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Source information for this chat.

References

Pullman, M. (2015). Materials Requirements Planning. Retrieved from www.sba.pdx.edu/faculty/melliep/459/MRPMEP.ppt

Task List. (2014). MGM375. CTU Online. Retrieved from https://campus.ctuonline.edu

SCM310-1404B-02: Quality and Supply Chain Management

What is this course about?

Course Description In this course you will examine current principles and techniques employed in managing inventories as an integral part of a company’s supply chain. Emphasis is on developing the right mix of inventory locations and levels to minimize cost and maximize profit. Impact of supply chain disruptions and ways to mitigate them are also covered.Course Outcomes

Discuss the various elements of a material control system.Produce a Manufacturing Resource Planning (MRP) based on projected production levels.Employ a physical inventory and storage system with required inventory levelsDescribe physical distribution systemsPrepare a demand ordering system

Formatting of All Assignments

COURSE MATERIAL INFORMATION: Your textbook is available under the syllabus tab: Supply Chain Science

NOTE: You will need to read the textbook very carefully before completing assignments.

When you are submitting a Word document, which is required in all Individual Projects (IP) you must follow these requirements for a title page:

1. Title page: (Assignment title, Your name, Course, Instructor and Date).

2. 1 inch margins all around

3. Double spacing

4. #12 Font, Times New Roman OR Arial

5. Proper paragraph indentations

6. No extra lines between paragraphs

Page 2 and more.

1. Repeat the title at the top of page two (use the header information)

2. Introduction (with thesis statement at the end), body paragraphs, and concluding paragraph.

3. NOTE: You will need to cite from the textbook material in support of your ideas.

4. Add a References page on a new page at the end of the essay.7

Late Assignment PoliciesIndividual Projects: If you submit an IP after its due date, the following penalties will apply:

1-3 days late: 5% penalty

4-6 days late: 10% penalty

7-9 days late: 20% penalty

NOTE: Discussion board comments to classmates’ work must be posted within deadlines (Sunday midnight) of each week; there are no late submissions here.

10+ days late: Assignments that are 9 days and more late may or may not be accepted at my discretion and is subject to a 25% penalty. I must hear from you before you post here.

My expectations on how these late policies will be met:

When I grade work and your submission is not there, I will assign a “temporary 0” and I will send you an e-mail reminder to post your work. As soon as I receive an e-mail notification from you that your submission has been posted, I will promptly grade your work, with the appropriate late-point deduction.

If you know that an assignment will be late, please contact me at least 2 days before the due date so that an arrangement can be made. I will e-mail you my response, and make a notation in your gradebook when I grade work; a “temporary 0” will be assigned until your work is received and graded.

If you are approved to turn in an assignment late (without late-point deductions), you must email me when you submit it; otherwise, I will not grade it because I will not know it is there.

The last assignment must be turned in no later than the last day of class unless an ‘Incomplete’ grade has been granted in advance.

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THE IMPORTANCE OF PROPER APA CITATIONS AND REFERENCES.

Please note that it is important to cite correctly and to provide a References page, which must be in the APA style of documentation. Note the following:

1. If it is not your own idea (you have looked it up elsewhere) and you have added it into your essay, be sure to cite correctly.

2. It is best to cite (quote, summarize, paraphrase) researched material correctly in your essay when it appears IN your writing in your paragraphs.

3. When quoting, quote brief sentences only.

By all means, please avoid the following:

1. DO NOT Copy/paste huge extracts work from the internet and then add a Reference listing at the end of the essay. This is NOT sound documentation practices.

2. DO NOT reword the researched information in your own words and then add a References listing at the end of the essay. This is NOT sound documentation practices.

The reference source must be indicated immediately when you introduce your researched material IN the paragraph by following the APA style of documentation.

The bulk of your essay must be your own ideas and interpretation of the primary source (textbook), and from secondary sources, with citations APA style in the paragraph, as follows:

1. From the reading (primary source: textbook) to support your ideas

2. From a secondary source (researched material from the CTU online library and/or credible Websites) to enhance your ideas.

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CTU Academic Honesty Policy

Take care to review CTU’s academic honesty policy as posted in the first Task List. I am repeating this here. Academic Honesty: NOTE: Please note these guidelines.

CTU measures success by promoting a culture of integrity at all levels of the University. Our idea of academic integrity includes respect, responsibility, trust, fairness, and honesty.

As a student of CTU, you are expected to submit authentic, original work that fully acknowledges any outside materials used in support of each assignment.

I encourage you to review the University Policies located on the Virtual Campus home tab. Our Academic Honesty policies in particular, as it applies to plagiarism and cheating are extremely important.

Please note that the University takes a very strict stance on this matter and it will be up to you to familiarize yourself fully.

If a student compromises academic integrity, the University reserves the right to enact academic consequences that may lead to dismissal from the University.

REFER TO “Honesty Letter.”

Therefore, please review the Task List guidance, and do not forget to review the sample essays located at “Course Home, “Instructor Files.”

Take good care to follow these recommendations as you complete your Final Essay, which carries a value of 250 points.

Please review this link for further guidance: http://www.plagiarism.org/

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Outlining and Developing an EssayPlease follow this plan for your mini-essays and essays.

Write in complete paragraphs.

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Outline: develop your ideas in complete paragraphs.I. INTRODUCTION A. Start with a sentence that will catch the attention of the reader, but also introduces the subject of the paper. B. Name Main Points - Usually two or three, in the same order in which they will be discussed in the essay body. C. State Thesis - Opinion or point of view you intend to defend, to be supported by main points.II. BODY : Always add a citation in support of your analysis.A. Main Point - First Paragraph (same for Second and Third Paragraphs) 1. Topic Sentence - Introduce first main point; limits paragraph to only that topic. 2. Examples that are illuminative and provide proof for you topic. 3. Explanation and details: add your citations from the textbook and secondary source to support your ideas. 4. Conclusion/Transition III. CONCLUSION A. Return to general discussion as in INTRODUCTION. B. Restate Thesis (NOTE: Restating the thesis means rewording the thesis, not simply "cutting & pasting it"). C. Concluding Statement - Ends essay with impact and makes it more than simply repetition of the Introduction. Reference: this is on a new page at the end of the essay in the same document.

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SAMPLE APA MINI-ESSAY. Spend a Little, Save a Lot: Live Healthy and Ride the Bus to Work.If you are a driver, you can hop in your car at any hour of the day or night and speed off to any destination you please. This is a very convenient way to travel. However, you may not realize this, but your car is a major expense and a constant source of pollution. There is a very simple way to help reduce pollution, save money, and be safer all at the same time: ride the bus to work. By doing this, you will find that your lungs no longer hurt from the pollution on the roads, you will save your hard-earned money by avoiding the gas and repair bills, and your mind will be free from the stress of avoiding accidents and navigating through heavy traffic. Cutting back on pollution is something that everybody should consider doing. This is very important since living healthy lives depend on healthy practices. Indeed, we should be concerned with what we breathe in to our bodies. How can we best accomplish this clean-air practice? Of course, mass transit is the clear solution. First, let us look at some important figures on the amount of pollutants resulting from driving our car. According to Artunian (1995), “On average, riding mass transit instead of driving cut hydrocarbons emissions that produce smog by 90%, carbon monoxide by more than 75%, and nitrogen oxide by a range of 15% to 75%” (p. 17). Therefore, we can see that a single person can make a difference by riding the bus. The long-term benefits are staggering. By not driving a car for one year, that one person can save “9.1 pounds of hydrocarbons, 62.5 pounds of carbon monoxide, and 4.9 pounds of nitrogen oxide” (Camp, 1995). It is clear then that if more people park their cars and ride the bus, there will be fewer vehicles on the road to give off polluting fumes. As indicated in the Transit Guide and Route Map (1996) there are seventy bus lines running throughout the city, with a bus every twenty minutes at peak travel times, and “transfer” passes are available all week-days; indeed, for one dollar, you can get to work feeling healthy and energized to put-in a full day’s work at maximum efficiency, with time enough to take a well-deserved nap on the ride back home.In addition, there can be substantial savings by not driving the car to work….Also, think of the stress-free days we can enjoy by just relaxing in the bus to and from work….Since we do have public transit, why not try riding the bus for a change? You can breathe clean air, take naps, and come-home refreshed for an enjoyable evening at the TV or even go out with the family. Indeed, you and your family deserve the very best. After all, riding the bus helps not only you but your fellow travelers as well.

ReferencesArtunian, J. (1995, 2 Jan.). Want to clear the air? Hop on the bus! Current Health, 16-17.Camp, D. H. (1988, 18 Nov.). Dollars and sense: The economic case for publictransportation in America. CTTA Online. Community Transportation Associationof America. Retrieved on June 27, 2009 from http://www.ctta.org/pubs/dollars.Transit Guide and Route Map. Map. (2009). Corvallis: Corvallis TransportationServices.

Outlining and Developing an EssayPlease follow this plan for your mini-essays and essays.

Write in complete paragraphs.

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Please review the following links for proper development of an APA style paper.

Review this video and note the text information also: The 5 Paragraph Essay Format: http://www.englishdiscourse.org/5.paragraph.essay.format.1301.html

Sample papers format: http://digitalcommons.liberty.edu/cgi/viewcontent.cgi?article=1134&context=educ_fac_pubs

Detailed format: https://www.hvcc.edu/lrc/research/apa-sampleresearchpaper.pdf

Example of an APA research paper:

http://wwwcc.ivytech.edu/shared/shared_librstatewidecc/pdf files/sample_papers_mla_apa/revised_sample_apa_paper.pdf

1. Read the assigned course materials very carefully

2. Plan your essay based on the Task List requirements

3. Read and Quote from the textbook (primary source)

4. Add secondary sources (what the critics say) to reinforce your ideas.

5. Develop sound APA documentation practices.

How to do very well in this course

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Please note these helpful suggestions:

Note the recommendations in the Task List on how to approach the reading, drafting, writing and revising processes with APA

documentation.

Go to “Course Home”, and scroll down to the bottom of the screen to “Instructor Files” and note the sample essays.

Twice weekly chats: Attend the chats, OR listen to the archived chats. The Power Point files for all chats will be available before

the chats (same process as #1 above).

Course Assistance

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NOTE: Every Task List for each assignment has a link to a complete audio/video learning experience “My Unique Learning Experience”: please note these links, and be well-acquainted with the information: look for this “blue box” link in the Task List: “M U S E.” For information on the complete grading matrix, please refer to the information at the top of the Task List.

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GRADING RUBRIC

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Please note: Writing Center IMPORTANT COURSE DOCUMENTS (Please Review).* go to top toolbar "Learning Center:* next go to "Learning Labs"* scroll down below "General Labs"* "click" on link "Writing Support Center."

Please note this also: Writing Center Chat Schedule: Go to Learning Center.

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CTU Online: Library Tours and Chats:

Librarian Office HoursHave a question about finding resources for your assignment but aren’t quite sure where in the

library to start? During these weekly sessions a librarian will be available to help you choose keywords and databases to use in your research. We’ll be able to use the screen sharing available

in the classroom so you can see exactly how to conduct the search on your own. Bring your questions and topics you are researching.

Review Library Website for details of chat

*Note these office hours are held in the library’s classroom and will not be recorded. For general information about using the library check out one of the tours listed below.

To Access the Library ClassroomGo to the Library.

Click on the link for Library Classes and Events under Library Information in the center of the page. A new page will open

Click on the link for the classroom next to the calendar. The link will be live only a few minutes before the scheduled start time. The classroom will open in a new window.

The classroom is open 15 minutes before the class begins. If you have questions, let us know at librarian@ctuonline.edu

English Resources in the Library

Review Library website for details of chat

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Questions & Answers

How may I help You?

Format for all IP DocumentsWhen you are submitting a Word document, which is required in all

Individual Projects (IP) you must follow these requirements:

• 1. Title page (Essay Title, Your Name. Course, Instructor, Date).• 2. 1 inch margins all around• 3. Double spacing• 4. #12 Font, Times New Roman OR Arial• 5. Proper paragraph indentations• 6. No extra lines between paragraphs• 7. References page on a separate page at the end (last page) of the

essay

• We are using the APA style of documentation in this course.

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Assignments for this course

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# Ph Task Type Format Description Length Due Date Points

1 1 1 DB Post DB Self-introduction 2-3 par Wed 5/20/2015 10

2 1 2 DB 2 Post DB Supply Chain Globalization2 follow-up comments

Mini-essay: 400-600 words100 words each comment

Wed 5/20/2015Sun 5/24/2015

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3 1 3 IP Submit Word Doc

Sourcing concepts: local and global

Essay: 1000 – 1,250 words Mon 5/25/2015 100

4 2 1 DB Post DB Demand based ordering system2 follow-up comments

Mini-essay: 400-600 words100 words each comment

Wed 5/27/2015.Sun 5/31/2015

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5 2 2 IP Submit Word Doc

MRP Analysis With Template

Essay: 1000 – 1,250 words Mon 6/1/2015 100

6 3 1 DB Post DB Warehousing Analysis2 follow-up comments

Moni-essay: 400-600 words Wed 6/3/2015Sun 6/7/2015

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7 3 2 IP Submit Word Doc

Power-Point: Supply Chain Analysis

20-25 slides with notes Mon 6/8/2015 100

8 4 2 DB Post DB Draft/outline of Phase 5 IP: Supply Chain proposal.

Draft/outline Wed 6/10/2015Sun 6/14/2015

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9 4 1 IP Submit Word Doc

Supply Chain ProposalDraft of Phase 5 IP

Mini-essay: 2000-2,500 words, and chart.

Mon 6/15/2015 150

10 5 1 DB Post DB Personal analysis of course2 follow-up comments

Mini-essay: 3-5 par100 words each

Wed 6/17/2015Sun 6/21/2015

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11 5 2 IP Submit Word Doc

Supply Chain ProposalFinal: Revision of Ph. 4 IP.

Essay: 2000 – 2500 words Mon 6/22/2015 250

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Questions & Answers

How may I help You?

OUR FOURTH ASSIGNMENT: Phase 1 DB 2: TWO PARTS. Part A: “Quality Programs”: (due by Wednesday 5/27/2015).

Part B: Two detailed comments to classmates’ postings: (due by Sunday 5/31/2015) 

Assignment: One Primary Posting & Two Follow-up Comments to Classmates’ Postings.

Primary Task Response:

As a newly hired manager for a consumer products manufacturing company, your chief executive officer (CEO) has asked you to educate the senior staff on the pros and cons of establishing a demand-based ordering system,

This is sometimes referred to as just in time, versus the more traditional forecast-based ordering system that the firm has used for years.

Make sure you provide at least 2 pros and 2 cons for each of the 2 different systems.

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Primary Task Response:

As a newly hired manager for a consumer products manufacturing company, your chief executive officer (CEO) has asked you to educate the senior staff on the pros and cons of establishing a demand-based ordering system. This is sometimes referred to as just in time, versus the more traditional forecast-based ordering system that the firm has used for years. Make sure you provide at least 2 pros and 2 cons for each of the 2 different systems.

Suggested mini-Essay Plan:

Introductory paragraph: Define Just In Time and Traditional Purchasing

First body Paragraph: Discuss pros and cons of each system

Second body paragraph: Provide at least 2 pros and 2 cons for each of the 2 different systems.

Conclusion paragraph: Your final recommendations.

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OUR FOURTH ASSIGNMENT: Phase 1 DB 2: TWO PARTS. Part A: “Quality Programs”: (due by Wednesday 5/27/2015).

Part B: Two detailed comments to classmates’ postings: (due by Sunday 5/31/2015) 

•Guidance: Review previous Task List (above) on how to develop strong paragraphs.•Review: The Importance of Quality Improvement in Your Business Venture: http://www.sixsigmaonline.org/six-sigma-training-certification-information/the-importance-of-quality-improvement-in-your-business-venture.html•Review: Efficient and Effective Vendor Management Best Practices:•http://www.iimmbangalore.org/knowledge-domain/201-efficient-and-effective-vendor-management-best-practices-.html

•Review video vendor initiatives: https://www.youtube.com/watch?v=-woErTmzfME•NOTE: the video above is for informational purposes only. If you refer to this video in your essay, please cite correctly APA style: •If you refer to the textbook information or you have consulted secondary sources, take care to cite correctly APA style and include a References page.•Review this link on APA documentation: https://owl.english.purdue.edu/owl/resource/560/01/•Video on APA documentation: https://www.youtube.com/watch?v=tNuYwptSzP8

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Responses to Other Students:

Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening.

To help you with your discussion, please consider the following questions:

What did you learn from your classmate's posting?

What additional questions do you have after reading the posting?

What clarification do you need regarding the posting?

What differences or similarities do you see between your posting and other classmates' postings?

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OUR FOURTH ASSIGNMENT: Phase 1 DB 2: TWO PARTS. Part A: “Quality Programs”: (due by Wednesday 5/27/2015).

Part B: Two detailed comments to classmates’ postings: (due by Sunday 5/31/2015) 

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Questions & Answers

How may I help You?

OUR FIFTH ASSIGNMENT: Phase 2 IP Task Type: Individual Project Deliverable Length: 1,000 words

Points Possible: 100 Due Date: 6/1/2015 11:59:59 PM

  Part 1: Use the provided MRP template to develop a 6-week manufacturing resource plan (MRP),

given the following information:

Download the MRP Template

The finished product being produced requires 1 of component A, 2 of component B, and 0.5 of component C.

The production plan is to have in inventory, ready for sale, 100 units by the end of each of weeks 1–3 and 200 of the finished units by the end of weeks 4–6.

All the components A, B, and C must be available at the beginning of the planned production week.

Lead times from the vendors for A, B, and C are 1, 2, and 3 weeks respectively

Production takes 1 week.

(For example, you would want necessary quantities of A,B, and C in the factory on Monday morning so that the finished units would be available for sale at the end of that same week.).

Part 2: At the bottom of this template, describe the importance of accurate lead time and bill of material information to have an accurate MRP.

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OUR FIFTH ASSIGNMENT: Phase 2 IP Task Type: Individual Project Deliverable Length: 1,000 words

Points Possible: 100 Due Date: 12/1/2014 11:59:59 PM

 

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MRP Template for Phase 2 Individual Project

  3 weeks earlier

2 weeks earlier

1 week earlier

1 2 3 4 5 6

Production Required by end of week:       100 100 100 200 200 200

Total As needed at 1 per unit                  

When must As be ordered, and how many: 1 week lead time

                 

Total Bs needed at 2/unit                  

When must Bs be ordered, and how many: 2 week lead time

                 

Total Cs needed at 0.5/unit                  

When must Cs be ordered, and how many: 3 week lead time

                 

Part 1: Use the provided MRP template to develop a 6-week manufacturing resource plan (MRP), given the following information:

Download the MRP Template

The finished product being produced requires 1 of component A, 2 of component B, and 0.5 of component C.

The production plan is to have in inventory, ready for sale, 100 units by the end of each of weeks 1–3 and 200 of the finished units by the end of weeks 4–6.

All the components A, B, and C must be available at the beginning of the planned production week.

Lead times from the vendors for A, B, and C are 1, 2, and 3 weeks respectively

Production takes 1 week.

(For example, you would want necessary quantities of A,B, and C in the factory on Monday morning so that the finished units would be available for sale at the end of that same week.).

Part 2: At the bottom of this template, describe the importance of accurate lead time and bill of material information to have an accurate MRP.

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Questions & Answers

How may I help You?

Material Requirements Planning

ISQA 459 Class 4 Mellie Pullman

Materials Requirements Planning

• Material Requirements Planning (MRP)

• MRP Logic and Product Structure Trees

• MRP Example

• Lot Sizing in MRP Programs

Material Requirements Planning• Materials requirements planning (MRP) is the

logic for determining the number of parts, components, and materials needed to produce a product.

• MRP provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced.

• Dependent demand drives MRP.• MRP is a software system.

Example of MRP Logic and Product Structure Tree

B(4)

E(1)D(2)

C(2)

F(2)D(3)

A

Product Structure Tree for Assembly ALead TimesA 1 dayB 2 daysC 1 dayD 3 daysE 4 daysF 1 day

DemandDay 10 50 ADay 8 20 B (Spares)Day 6 15 D (Spares)

Given the product structure tree for “A” and the lead time and demand information below, provide a materials requirements plan that defines the number of units of each component and when they will be needed.

LT = 1 day

Day: 1 2 3 4 5 6 7 8 9 10A Required 50

Order Placement 50

First, the number of units of “A” are scheduled backwards to allow for their lead time. So, in the materials requirement plan below, we have to place an order for 50 units of “A” in the 9 th week to receive them in the 10th week.

Next, we need to start scheduling the components that make up “A”. In the case of component “B” we need 4 B’s for each A. Since we need 50 A’s, that means 200 B’s. And again, we back the schedule up for the necessary 2 days of lead time.

Day: 1 2 3 4 5 6 7 8 9 10A Required 50

Order Placement 50B Required 20 200

Order Placement 20 200

SparesLT = 2

B(4)

E(1)D(2)

C(2)

F(2)D(3)

A 4x50=200

Day: 1 2 3 4 5 6 7 8 9 10A Required 50

LT=1 Order Placement 50B Required 20 200

LT=2 Order Placement 20 200C Required 100

LT=1 Order Placement 100D Required 55 400 300

LT=3 Order Placement 55 400 300E Required 20 200

LT=4 Order Placement 20 200F Required 200

LT=1 Order Placement 200

B(4)

E(1)D(2)

C(2)

F(2)D(3)

A

40 + 15 spares

Part D: Day 6

Finally, repeating the process for all components, we have the final materials requirements plan:

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Material Requirements Planning System

• Based on a master production schedule, a material requirements planning system:– Creates schedules identifying the specific

parts and materials required to produce end items.

– Determines exact unit numbers needed.

– Determines the dates when orders for those materials should be released, based on lead times.

Firm orders from knowncustomers

Forecastsof demand

from estimates

Aggregateproduct

plan

Masterproductionschedule

(MPS)

Materialplanning(MRP)

Engineeringdesign

changes

Bill ofmaterial

file

Inventorytransactions

Inventoryrecord

file

Reports

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Bill of Materials (BOM) FileA Complete Product Description

• Materials• Parts• Components• Production sequence • Modular BOM

– Component or Subassemblies BOM• Planning BOM or kits

– create an artificial parent to the BOM used for inexpensive items like washers or pins to group.

• Explosion: revealing the requirements for each component.

Coding

• If identical items exist at various levels in the BOM:– Item is coded at lowest

level at which it occurs– D (Level 2 or Level 3)– This number identifies

the part at the lowest level of usage.

A

B C

D E E F

G D

Inventory Records File• Buckets= time units in MRP system

– Week bucket vs. day bucket• Each inventory item carried as a separate file

– Status according to “time buckets”.• Pegging

– Identify each parent item that created demand. • Parent vs. child

– Parent= Items above the current level– Child = Items below the current level

Primary MRP Reports

• Planned orders to be released at a future time.• Order release notices to execute the planned

orders.• Changes in due dates of open orders due to

rescheduling. • Cancellations or suspensions of open orders

due to cancellation or suspension of orders on the master production schedule.

• Inventory status data.

Secondary MRP Reports• Planning reports, for example,

forecasting inventory requirements over a period of time.

• Performance reports used to determine agreement between actual and programmed usage and costs.

• Exception reports used to point out serious discrepancies, such as late or overdue orders.

Additional MRP Scheduling Terminology

• Gross Requirements: needed during each period.

• Scheduled Receipts: Existing orders that arrive at beginning of period.

• On-hand or available balance:

– (depending on software convention, could be at the beginning of each period or end):

– Book: Inventory balance at end of each period.

• Net requirements: What is need to meet requirements and safety stock.

• Planned order receipt: arrives at beginning of period.

• Planned order release: Addresses lead time.

MRP Examples

Closed Loop MRPProduction PlanningMaster Production SchedulingMaterial Requirements PlanningCapacity Requirements Planning

Realistic?No

Feedback

Execute:Capacity PlansMaterial Plans

Yes

Feedback

Lot Sizing in MRP Programs• Lot-for-lot (L4L)• Economic order quantity (EOQ)• Least total cost (LTC)• Least unit cost (LUC)• Part Period Balancing-changing lot sizes

to reflect requirements in the future (how many periods should be combined to reduce cost)

MRP Game

Different types of lot sizes

Tinker Toy Lawn Mower

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Questions & Answers

How may I help You?

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Source information for this chat.

References

Pullman, M. (2015). Materials Requirements Planning. Retrieved from www.sba.pdx.edu/faculty/melliep/459/MRPMEP.ppt

Task List. (2014). MGM375. CTU Online. Retrieved from https://campus.ctuonline.edu

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Questions & Answers

How may I help You?

1. Read the assigned course materials very carefully

2. Plan your essay based on the Task List requirements

3. Quote from the textbook (primary source) to support your ideas

4. Add secondary sources (what the critics say) to reinforce your ideas.

5. Develop sound APA documentation practices.

In conclusion:How to do very well in this course

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Questions & Answers

How may I help You?

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Questions & Answers Questions & Answers

How may I help You?How may I help You?

Our Next ChatTuesday Afternoon.

See you there!