11/10: MRP continued.

• Review: Material Requirements Planning

• Need to know: – Master Schedule– Bill of Materials– Lead times– Due date.

Go to spreadsheet.

Group Exercise• You make the PalmPointer, a handy personal digital assistant.

You have received an order for 200 units to be shipped in 12 minutes. A PalmPointer is made of a LCD screen, 4 buttons, 1 toggle button, and a motherboard. The motherboard is made of 3 processors, 2 clock batteries, and a circuit board. Assembly time for the assemblies are as follows:

PalmPointer 2 minutes LCD screen 1

buttons 2 toggle button 3

motherboard 6 processors 2

batteries 1 circuit board 3

• Create an MRP schedule to determine when to begin assembling each component.

Lot sizing

• lot-for-lot (L4L): order exactly the amount you want.

• Lot req. sized: order in certain amounts (ex. a dozen eggs).

Scheduled Receipts

• Units (of any component) that you have already scheduled to come in at a particular time.

On-Hand Inventory

• Units (of any component) that you already have in stock (at the beginning).

Gross Req. vs. Net Req.

• Gross required is the total amount of a component you need.

• Net required is (Gross)

• - (On-hand inventory)

• - (Scheduled receipts)

Planned Order Receipts

Planned Order Releases

• What you PLAN to RECEIVE what you ORDERED.

• What you PLAN to RELEASE in an ORDER.

New MRP Layout

1 2 3

Gross Requirements

Scheduled Receipts

On-Hand Inventory

Net Requirements

Planned Order Receipt

Planned Order Release

Part A

LT=1

2 Req.

L4L

Group Exercise• You have to ship an order for 200 PalmPointers in 12 hours. A

PalmPointer (2 h) is made of a LCD screen (1 h), 4 buttons (2 h), 1 toggle button (3 h), and a motherboard (6 h). The motherboard is made of 3 processors (2 h), 2 clock batteries (1 h), and a circuit board (3 h).

• You already have 1000 buttons and 50 motherboards on hand. You are expecting (by the note that the last shift left for you) 50 LCD screens in 6 hours and 50 motherboards in 4 hours.

• Create an MRP schedule to determine when to begin assembling each component.

Homework due 11/12

• Handout.