Chapter3 1

Resource Requirement Planning Resource Requirement Planning

Chapter 3

Production Planning Production Planning & Control& Control

Chapter3 2

Evolution of Material Planning SystemsEvolution of Material Planning Systems

Back in the sixties, manufacturing planning systems Back in the sixties, manufacturing planning systems were reorder point systems that simply determined were reorder point systems that simply determined when and how much to orderwhen and how much to orderFirstFirst MRPMRP systems translated a master schedule of final systems translated a master schedule of final products into timeproducts into time--phased net requirements for phased net requirements for subassemblies, assemblies, and partssubassemblies, assemblies, and partsClosedClosed--loop MRPloop MRP included production planning, included production planning, master scheduling, and capacity requirementsmaster scheduling, and capacity requirementsIn mid 1970In mid 1970’’s, s, MRPIIMRPII systems added functionality to systems added functionality to plan and execute all internal functionsplan and execute all internal functions

Chapter3 3

Material Requirements Planning Material Requirements Planning (MRP)(MRP)

ComputerComputer--based information system that based information system that schedules and orders dependentschedules and orders dependent--demand demand inventory components;inventory components;Uses the master production schedule, bills of Uses the master production schedule, bills of materials, and inventory records as inputs;materials, and inventory records as inputs;Outputs recommendations:Outputs recommendations:–– When to release new orders.When to release new orders.–– When to reschedule open orders.When to reschedule open orders.

Chapter3 4

An Overview of MRPAn Overview of MRPMRPMRP uses the concept of backward scheduling to determine how uses the concept of backward scheduling to determine how much and when to order and replenishmuch and when to order and replenishThe The CPR moduleCPR module checks to make sure the scheduled work load checks to make sure the scheduled work load profile is feasibleprofile is feasibleThe The MPSMPS module contains the authorized schedulemodule contains the authorized scheduleThe The BOMBOM module contains the product structure for each unique module contains the product structure for each unique productproductThe The Inventory Record moduleInventory Record module keeps track of the inventory keeps track of the inventory status for each item in the databasestatus for each item in the databaseMRP output includes schedules for all internal activities and MRP output includes schedules for all internal activities and parts as well as orders for all supply chain itemsparts as well as orders for all supply chain items

Chapter3 6

MRP SystemMRP System

Chapter3 7

Input/Output Input/Output -- MRP ProcessMRP Process

MRP Inputs1. A master production schedule

2. A Bill of Materials

3. An inventory records file

Product Structure

TreeLead Times

MRP InputsBill of materials (BOM):Bill of materials (BOM): a listing of all of

the raw materials, parts, subassemblies, and assemblies needed to produce one unit of a product.

Each finished product has its own bill of materials.

Product structure tree:Product structure tree: Visual depiction of the requirements in a bill of materials, where all components are listed by levels.

MRP InputsBill of materials (BOM):Bill of materials (BOM):The BOM identifies, how each end product is

manufactured, specifying all subcomponent items, their sequence of buildup, their quantities in each finished unit, and which work centers perform the buildup sequence in the facility.

This information is obtained from product design documents, work flow analysis, and other standard manufacturing and industrial engineering documentation.

MRP InputsBill of materials (BOM):Bill of materials (BOM):

MRP InputsInventory recordsInventory records::Includes information on the status of each

item by time period:•Gross requirements•Scheduled receipts•Expected amount on hand•Lead time•Lot size policy•And more …

MRP OutputsPlanned ordersPlanned orders - Schedule indicating

the amount and timing of future orders.

Order releaseOrder release - Authorization for the execution of planned orders.

ChangesChanges - revisions of due dates or order quantities, or cancellations of orders.

MRP Outputs

PerformancePerformance--control reportscontrol reports evaluate system operations.

Planning reportsPlanning reports are useful in forecasting future inventory requirements.

Exception reportsException reports call attention to major discrepancies.

Chapter3 17

Types of DemandTypes of DemandThere are two types of demand.There are two types of demand.Independent DemandIndependent Demand–– Is the demand for finished productsIs the demand for finished products–– Does not depend on the demand of other productsDoes not depend on the demand of other products–– Needs to be forecastedNeeds to be forecasted

Dependent DemandDependent Demand–– Is the demand derived from finished productsIs the demand derived from finished products–– Is the demand for component parts based on the Is the demand for component parts based on the

number of end items being produced and is number of end items being produced and is managed by the MRP systemmanaged by the MRP system

Chapter3 18

MRPMRPResponds to the fundamental manufacturing Responds to the fundamental manufacturing equation:equation:–– What are we going to make?What are we going to make?

»» Master production schedule.Master production schedule.

–– What does it take to make it?What does it take to make it?»» Bill of materials.Bill of materials.

–– What have we got?What have we got?»» Inventory records.Inventory records.

–– What do we have to get?What do we have to get?»» Material Requirements plan: planned orders.Material Requirements plan: planned orders.

Chapter3 19

Objectives of MRPObjectives of MRPDetermines the quantity and timing of Determines the quantity and timing of material requirementsmaterial requirements–– Determines what to order (checks BOM), how Determines what to order (checks BOM), how

much to order (lot size rules), when to place the much to order (lot size rules), when to place the order (needed date minus lead time), and when to order (needed date minus lead time), and when to schedule delivery (on date needed)schedule delivery (on date needed)

Maintain prioritiesMaintain priorities–– In a changing environment, MRP reorganizes In a changing environment, MRP reorganizes

priorities to keep plans current and viablepriorities to keep plans current and viable

Chapter3 20

Building a CD Cabinet With MRPBuilding a CD Cabinet With MRP

Chapter3 21

MRP Inputs MRP Inputs -- Authorized MPSAuthorized MPS

From the authorized MPS, we calculate when we need to From the authorized MPS, we calculate when we need to have replenishment orders of CD cabinets; when we need a have replenishment orders of CD cabinets; when we need a new MPS order.new MPS order.

Table 14-1 Initial MPS Record for CD CabinetItem: CD CabinetLot size rule: FOQ=100Lead time: 1 week

1 2 3 4 5 6 7 8 9 10 11 12Gross Requirements: 25 25 25 25 30 30 30 30 35 35 35 35Projected Available: 80 55 30 5 -20MPS

Table 14-2 Updated MPS Record for CD CabinetItem: CD CabinetLot size rule: FOQ=100Lead time: 1 week

1 2 3 4 5 6 7 8 9 10 11 12Gross Requirements: 25 25 25 25 30 30 30 30 35 35 35 35Projected Available: 80 55 30 5 80 50 20 90 60 25 90 55 20MPS 100 100 100

Chapter3 22

MRP InputsMRP Inputs--Inventory RecordsInventory Records

System checks the inventory record for each BOM item to see if System checks the inventory record for each BOM item to see if inventory is available or if a replenishment order is needed to inventory is available or if a replenishment order is needed to build the build the cabinets.cabinets.

Table 14-3 First Inventory Record for CD CabinetItem: CD CabinetLot size rule: L4LLead time: 1 week

1 2 3 4 5 6 7 8 9 10 11 12Gross Requirements: 0 0 0 100 0 0 100 0 0 100 0 0Scheduled Receipts:Projected Available: 0 0 0 0 -100Planned Orders

Table 14-4 Updated Inventory Record for CD CabinetItem: CD CabinetLot size rule: L4LLead time: 1 week

1 2 3 4 5 6 7 8 9 10 11 12Gross Requirements: 0 0 0 100 0 0 100 0 0 100 0 0Scheduled Receipts:Projected Available: 0 0 0 0 0 0 0 0 0 0 0 0 0Planned Orders 100 100 100

Chapter3 23

MRP InputsMRP Inputs--Bills of MaterialBills of Material

A BOM lists all of the items A BOM lists all of the items needed to produce one CD needed to produce one CD cabinetcabinetThe BOM is exactly like a The BOM is exactly like a recipe for baking a cakerecipe for baking a cakeThe BOMThe BOM’’s must be s must be complete and accurate and complete and accurate and can only be changed by an can only be changed by an ECNECNMRP BOMMRP BOM’’s are indented s are indented bills of materialsbills of materials

Chapter3 24

Bill of Materials (BOM)Bill of Materials (BOM)

Contains product description (components) and Contains product description (components) and sequence of assembly.sequence of assembly.Also called product structure or product tree.Also called product structure or product tree.Levels: end item at 0, assemblies for end item at Levels: end item at 0, assemblies for end item at 1, subassemblies for assemblies at 2, etc.1, subassemblies for assemblies at 2, etc.LowLow--level coding: placing identical items used level coding: placing identical items used for multiple purposes at the same level.for multiple purposes at the same level.

Chapter3 25

A Product Structure TreeA Product Structure Tree

Chapter3 26

Inventory RecordsInventory Records

Contains Contains information about information about each inventory each inventory item and its status item and its status (e.g., on(e.g., on--hand hand balance).balance).

Chapter3 27

Inventory RecordInventory Record

Gross requirements:Gross requirements:–– The total period demand for the item The total period demand for the item

Scheduled receipts:Scheduled receipts:–– An open order with an assigned due dateAn open order with an assigned due date

Projected available:Projected available:–– The projected inventory balance for the periodThe projected inventory balance for the period

Planned orders:Planned orders:–– Quantities & released dates suggested by the Quantities & released dates suggested by the

MRP systemMRP system

Chapter3 28

MRP System InputsMRP System InputsMaster production Schedule

The MPS specifies what end products are to The MPS specifies what end products are to be produced and when .be produced and when .The planning horizon should be long enough The planning horizon should be long enough to cover the cumulative lead times all to cover the cumulative lead times all components that must be purchased or components that must be purchased or manufactured to meet the end product manufactured to meet the end product requirementrequirement

Chapter3 29

Lot Sizing RulesLot Sizing Rules

Rules are used to change the frequency of Rules are used to change the frequency of replenishment orders & set the quantity of each replenishment orders & set the quantity of each order (balance holding & ordering costs to order (balance holding & ordering costs to reduce total costs)reduce total costs)Common rules:Common rules:–– Fixed Order Quantity (FOQ)Fixed Order Quantity (FOQ)–– LotLot--forfor--Lot (L4L)Lot (L4L)–– Periodic Order Quantity (POQ)Periodic Order Quantity (POQ)

Chapter3 30

MRP TermsMRP Terms

Time bucket: period, usually 1 week.Time bucket: period, usually 1 week.Planning horizon: number of periods.Planning horizon: number of periods.Lead time offset: offsets a planned order release Lead time offset: offsets a planned order release from a required replenishment.from a required replenishment.Net requirement: difference between the gross Net requirement: difference between the gross requirements and the available inventory.requirements and the available inventory.

Chapter3 31

DefinitionsDefinitionsEnd item: End item: –– The product sold as a completed item or repair The product sold as a completed item or repair

part (an part (an independentlyindependently demanded item)demanded item)

Parent items:Parent items:–– Items produced from one or more Items produced from one or more ““childrenchildren””

Components:Components:–– Raw materials & other items (Raw materials & other items (““childrenchildren””) that are ) that are

part of a larger assemblypart of a larger assembly

Chapter3 32

DefinitionsDefinitions

Time buckets:Time buckets:–– The column in an inventory record that represents a The column in an inventory record that represents a

unit of timeunit of time

Action bucket:Action bucket:–– The current time periodThe current time period

Action notices:Action notices:–– Output from the MRP system identifying the need Output from the MRP system identifying the need

for an action (for an action (e.ge.g.: expedite or delay an order or .: expedite or delay an order or receipt)receipt)

Chapter3 33

ExampleExample

Inventory Record for Pie Safe

Item: Pie SafeLot size rule: L4LLead time: 1 week

0 1 2 3 4 5 6 7 8 9 10 11 12

Gross requirements 0 0 0 100 0 0 100 0 0 100 0 0

Scheduled receipts 100 100 100

Projected available 0 0 0 0 0 0 0 0 0 0 0 0 0

Planned orders 100 100 100

A Time Bucket

Chapter3 34

Operating LogicOperating Logic

Explosion:Explosion:–– Calculate the childrenCalculate the children’’s times time--phased gross phased gross

requirements by multiplying the parent itemrequirements by multiplying the parent item’’s s planned order amount by the number of children planned order amount by the number of children required to produce one parent itemrequired to produce one parent item

Chapter3 35

The MRP Explosion ProcessThe MRP Explosion Process

Using table 14Using table 14--6 and the product structure tree, we will work 6 and the product structure tree, we will work through an example of how the MRP explosion process would through an example of how the MRP explosion process would calculate the requirements for building a CD cabinet. On the calculate the requirements for building a CD cabinet. On the next slide we start with the cabinet top to illustrate how MRP next slide we start with the cabinet top to illustrate how MRP calculates the gross requirements for this component.calculates the gross requirements for this component.

Table 14-6 Updated Inventory Record for CD CabinetItem: CD Cabinet Parent: noneLot size rule: L4L Children: Top, bottom, door, left side, right side, shelves, shelf supportsLead time: 1 week

1 2 3 4 5 6 7 8 9 10 11 12Gross Requirements: 0 0 0 100 0 0 100 0 0 100 0 0Scheduled Receipts:Projected Available: 0 0 0 0 0 0 0 0 0 0 0 0 0Planned Orders: 100 100 100

Chapter3 36

Inventory Records Inventory Records -- ComponentsComponents

It was noted on the previousIt was noted on the previous slide that theslide that the parent item (CD Cabinet) has parent item (CD Cabinet) has planned orders in periods 3, 6, and 9.planned orders in periods 3, 6, and 9.Its children (top, bottom, door, left & right side, shelves, andIts children (top, bottom, door, left & right side, shelves, and supports) supports) have gross requirements in periods 3, 6, and 9.have gross requirements in periods 3, 6, and 9.

Chapter3 37

Inventory Records Inventory Records -- ComponentsComponents

Chapter3 38

Inventory RecordsInventory Records–– ComponentsComponents (cont.)(cont.)

Chapter3 39

Inventory RecordsInventory Records–– ComponentsComponents (cont.)(cont.)

Chapter3 40

Inventory Records Inventory Records –– RemainingRemaining ComponentsComponents

Chapter3 41

Inv. Records Inv. Records –– RemainingRemaining Components Components (cont.)(cont.)

Chapter3 42

Inv. Records Inv. Records –– RemainingRemaining Components Components (cont.)(cont.)

Chapter3 43

Example Comparing Lot Size Rules:Example Comparing Lot Size Rules: Three common lot sizing Three common lot sizing rules used within MRP Systems are fixed order quantity (FOQ), lorules used within MRP Systems are fixed order quantity (FOQ), lot for lot t for lot

(L4L), and period order quantity (POQ). Cost comparison is based(L4L), and period order quantity (POQ). Cost comparison is based on on Inventory holding costs ($0.10 per period) and ordering cost ($2Inventory holding costs ($0.10 per period) and ordering cost ($25 per 5 per

order). In this example order). In this example POQ is best at $133.50.POQ is best at $133.50.

Chapter3 44

Capacity RequirementsCapacity RequirementsPlanning (CRP)Planning (CRP)

Similar to rough cut capacity planningSimilar to rough cut capacity planningCRP is a feasibility check on labor & machine CRP is a feasibility check on labor & machine utilization:utilization:–– Compare the open orders & planned orders (from Compare the open orders & planned orders (from

the MRP) to the actual shop floor capacitythe MRP) to the actual shop floor capacity

Chapter3 45

Rough Cut Capacity Example:Rough Cut Capacity Example: The CRP module uses data from MRP. We The CRP module uses data from MRP. We calculate workloads for critical work centers based on open shopcalculate workloads for critical work centers based on open shop orders and orders and planned shop orders. These shop orders are translated into hoursplanned shop orders. These shop orders are translated into hours of work by of work by

work center and by time period.work center and by time period.Table 14Table 14--11 show items scheduled for work Center 101.11 show items scheduled for work Center 101.

AvailableAvailable = 4 machines x 2 shifts x 10 hours x 5 days x 0.85 utiliza= 4 machines x 2 shifts x 10 hours x 5 days x 0.85 utiliza-- x 0.95x 0.95 effieffi--CapacityCapacity per shift per wk.per shift per wk. tion ciency tion ciency Available = 323.0 standard hoursAvailable = 323.0 standard hoursCapacity Capacity

123456789

1011121314151617

A B C D E F GTable 14-11 Workload for Work Center 101

Run Time Total Setup per Unit in Item Weekly

Item Time Standard Time WorkloadPeriod Number Quantity (hours) Hours (hours) (hours)

4 DN100 250 3.0 0.20 53.0DP100 250 5.0 0.18 50.0DS119 150 2.5 0.30 47.5DT136 400 3.5 0.27 111.5 262.0

5 EQ555 1000 8.0 0.08 88.0ER616 500 4.0 0.22 114.0ES871 100 2.0 0.35 37.0 239.0

6 FA314 250 3.0 0.30 78.0FF369 100 1.5 0.12 13.5FR766 50 0.5 0.15 8.0FS119 200 3.0 0.35 73.0FY486 500 6.0 0.27 141.0 313.5

Chapter3 46

Workload Graph for Work Center 101Workload Graph for Work Center 101: : CRP enables a CRP enables a company to evaluate both the feasibility of the MRP system and hcompany to evaluate both the feasibility of the MRP system and how well ow well

the company is using its critical work centers.the company is using its critical work centers.

Chapter3 47

Issues in MRPIssues in MRP

Some of the issues which deserve consider Some of the issues which deserve consider ration in any comprehensive treatment of MRP ration in any comprehensive treatment of MRP are:are:Safety stock ,LotSafety stock ,Lot--sizing , Scrap allowancesizing , Scrap allowancePegging , Cycle countingPegging , Cycle countingUpdatingUpdatingTime fenceTime fence

Chapter3 48

MRP SystemMRP System——Other IssuesOther IssuesSafety stock: There are divergent views Safety stock: There are divergent views regarding whether the safety stock is used or not regarding whether the safety stock is used or not One side of argument supporting the use of One side of argument supporting the use of safety stock is that it performs the function of safety stock is that it performs the function of avoiding excessive shock outs caused by certain avoiding excessive shock outs caused by certain lead times &daily demand.lead times &daily demand.On the other hand those who oppose the use of On the other hand those who oppose the use of safety stock argues that safety stock is not safety stock argues that safety stock is not required because MRP system adopts to required because MRP system adopts to changing conditions that affect demand and lead changing conditions that affect demand and lead timestimes

Chapter3 49

MRP System IssuesMRP System Issues--Lot SizeLot SizeLot size : The MRP system generates Planned Lot size : The MRP system generates Planned order release, which triggers purchase orders for order release, which triggers purchase orders for outside suppliers , or production orders(WO)outside suppliers , or production orders(WO)Various methods of Lot sizingVarious methods of Lot sizing–– LotLot--forfor--lot (L4L or LFL): lot size matches net lot (L4L or LFL): lot size matches net

requirements.requirements.–– Least total cost (LTC): calculates a lot size that Least total cost (LTC): calculates a lot size that

equalizes holding and ordering costs.equalizes holding and ordering costs.–– Least unit cost (LUC): averages the LTC across the Least unit cost (LUC): averages the LTC across the

lot size.lot size.

Chapter3 50

MRP System IssuesMRP System Issues--Lot SizeLot SizeThe lot size may be determined by the period The lot size may be determined by the period order quantity(POQ) Technique.order quantity(POQ) Technique.POQ = No of weeks per yearPOQ = No of weeks per year

No of orders per yearNo of orders per year= N= N

D/QD/QD=Annual demandD=Annual demandQ=Economic Order quantityQ=Economic Order quantityN=Number of Weeks per yearN=Number of Weeks per year

Chapter3 51

MRP System Issues Scrap MRP System Issues Scrap AllowanceAllowance

Scrap allowance: The bill of material Scrap allowance: The bill of material explosion could include multiplication by a explosion could include multiplication by a factor (more than one) to make an allowance factor (more than one) to make an allowance for usual scrap loss in manufacturing an item.for usual scrap loss in manufacturing an item.

Chapter3 52

MRP System Issues MRP System Issues --PeggingPeggingThe MRP Pegging system is a new set of commands The MRP Pegging system is a new set of commands for your MG system which are designed to assist you for your MG system which are designed to assist you with your analysis of your MRP run. with your analysis of your MRP run. The MRP pegging system copies the MRP information The MRP pegging system copies the MRP information into an easy to access image data base for inquires by into an easy to access image data base for inquires by users. A data base guide, and schemas are provided users. A data base guide, and schemas are provided to users that may want to write their own inquires. to users that may want to write their own inquires. The utility also contains logic to determine if this is a The utility also contains logic to determine if this is a new MRP suggestion or a suggestion that has appear new MRP suggestion or a suggestion that has appear on previous MRP runs. We keep track of which on previous MRP runs. We keep track of which suggestions are new and the age of which suggestions are new and the age of which suggestions have not been addressed. suggestions have not been addressed. The system provides the Manman user with the The system provides the Manman user with the following new features: following new features:

Chapter3 53

MRP System Issues MRP System Issues --PeggingPeggingNet Change MRP report Net Change MRP report -- by selecting only new by selecting only new MRP suggestions, we can provide information on MRP suggestions, we can provide information on only what has changed since the last MRP run only what has changed since the last MRP run MRP Volatility MRP Volatility -- the system tracks the number of the system tracks the number of new MRP messages generated and the number of new MRP messages generated and the number of MRP suggestions processed MRP suggestions processed List Component Pegging List Component Pegging The system provides a The system provides a list command that provides a multilist command that provides a multi--level view of level view of where demand is coming from. where demand is coming from. Combination Order Action / Reschedule report Combination Order Action / Reschedule report

Chapter3 54

MRP System Issues MRP System Issues ––Cycle CountingCycle Counting"Cycle counting is truly a powerful working tool for "Cycle counting is truly a powerful working tool for maintaining inventory record accuracy," maintaining inventory record accuracy," "Finding erroneous records, sleuthing their causes, and "Finding erroneous records, sleuthing their causes, and

correcting these causes are the power base of cycle correcting these causes are the power base of cycle counting." However, they find that sleuthing error causes is counting." However, they find that sleuthing error causes is frequently ignored as the process is not well understood or frequently ignored as the process is not well understood or easy to perform. easy to perform. Brooks and Wilson, both of whom are consultants with the Brooks and Wilson, both of whom are consultants with the Oliver Wight organization, also delve into a lengthy Oliver Wight organization, also delve into a lengthy discussion and analysis of inventory tactics versus discussion and analysis of inventory tactics versus inventory control. inventory control. "It is important to recognize the impact that inventory tactics "It is important to recognize the impact that inventory tactics have on control issues," they explain. "Inventory tactics have on control issues," they explain. "Inventory tactics must be decided upon first before any inventory control must be decided upon first before any inventory control issues are addressedissues are addressed

Chapter3 55

MRP System Issues MRP System Issues ––Cycle CountingCycle Counting

." They identify and describe, by example, the ." They identify and describe, by example, the various elements of both inventory tactics and various elements of both inventory tactics and inventory control. Inventory Record Accuracy, inventory control. Inventory Record Accuracy, Second Edition, describes how to establish and Second Edition, describes how to establish and maintain inventory record accuracy in a Lean maintain inventory record accuracy in a Lean environment and covers new topics such as RFID environment and covers new topics such as RFID and supplier/vendorand supplier/vendor--managed inventory. managed inventory. Additionally, Brooks and Wilson have significantly Additionally, Brooks and Wilson have significantly expanded their explanation of inventory record expanded their explanation of inventory record tolerances and added a number of graphical tolerances and added a number of graphical displays and visuals to enhance the understanding displays and visuals to enhance the understanding of establishing tolerances. of establishing tolerances.

Chapter3 56

Benefits of MRP

Low levels of in-process inventories.

The ability to keep track of material requirements.

The ability to evaluate capacity requirements generated by a given master schedule.

A means of allocating production time.

Chapter3 57

MRP IIManufacturing Resources Planning (MRP II)Manufacturing Resources Planning (MRP II): Expanded MRP with emphasis placed on integration– Financial planning

– Marketing

– Engineering

– Purchasing

– Manufacturing

Chapter3 58

MRP II

MarketMarketDemandDemand

ProductionProductionplanplan

Problems?Problems?

RoughRough--cutcutcapacity planningcapacity planning

YesYes NoNo YesYesNoNo

FinanceFinance

MarketingMarketing

ManufacturingManufacturing

AdjustAdjustproduction planproduction plan

MasterMasterproduction scheduleproduction schedule

MRPMRP

CapacityCapacityplanningplanning

Problems?Problems?RequirementsRequirements

schedulesschedules

Adj

ust m

aste

r sch

edul

eA

djus

t mas

ter s

ched

ule

Chapter3 59

Problems in MRP Training: The workers have to be trained to learn and

become proficient with a new system and its processes.Integration and testing: Integrating the computer

systems associated with different areas of the firm and testing the links between various corporate areas and systems.

Data conversion and data analysisConsultant feesSolving implementation problems on an ongoing basisDealing with disappointing short-term resultsCompetition for high quality workers especially in the

IT field .

Chapter3 60

Close loop MRPClose loop MRP

Business Plan

Master Schedule

Production Plan

Shop floor Control

DetailedCapacity plan

Rough cut capacity Plan

Material Requirement Plan

Chapter3

Manufacturing

Finance

Marketing

Engineering

Purchase

Accounting

Chapter3 61

Resource Requirement Planning

End Of

Chapter 3

“Like” us on Facebook: http://www.facebook.com/welearnindia p // /

“Follow” us on Twitter:http://twitter com/WeLearnIndiahttp://twitter.com/WeLearnIndia

Watch informative videos on Youtube: http://www.youtube.com/WelingkarDLP