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Value Other Raw Material WIP Finished Goods Independent Dependent A Items B Items C Items Maintenance Dependent Operating Inventory Classifications Transparency Masters to acpany Operations Management, 5E (Heizer Render) 149 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 Item Materials With Independent Demand Materials With Dependent Demand Demand Source Company Customers Parent Items Material Type Finished Goods WIP Raw Materials Method of Estimating Demand Forecast Booked Customer Orders Calculated Planning Method EOQ ROP MRP Dependent versus Independent Demand Transparency Masters to acpany Operations Management, 5E (Heizer Render) 1410 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 Inputs to the Production Plan Production Plan Marketing Customer Demand Engineering Design Completion Management Return on Investment Capital Human Resources Manpower Planning Procurement Supplier Performance Finance Cash Flow Production Capacity Inventory Transparency Masters to acpany Operations Management, 5E (Heizer Render) 1411 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 Requirements for Effective Use of Dependent Demand Inventory Models Effective use of dependent demand inventory models requires that the operations manager know the: 168。 Collins requires: 168。 18,000 different inventory items 168。 Compute order releases Transparency Masters to acpany Operations Management, 5E (Heizer Render) 146 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 Collins Industries 168。 Define material requirements planning 168。 Distribution Resource Planning (DRP) 168。 Capacity Planning 168。 MRP and JIT 168。 Lead Times for Each Component 168。 Master Production Schedule 168。Transparency Masters to acpany Operations Management, 5E (Heizer Render) 141 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 Operations Management Material Requirements Planning (MRP) Chapter 14 Transparency Masters to acpany Operations Management, 5E (Heizer Render) 142 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 Outline 168。 Bills of Materials 168。 MRP Structure Transparency Masters to acpany Operations Management, 5E (Heizer Render) 143 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 Outline continued 168。 LotSizing Techniques 168。 Material requirements Planning II (MRP II) 168。 DRP Structure 168。 Explain the benefits of MRP 168。 Largest manufacturer of ambulances in the world 168。 6,000 manufactured parts 168。 Material plan must meet both the requirements of the master schedule and the capabilities of the production facility 168。 master production schedule 168。 lead times Transparency Masters to acpany Operations Management, 5E (Heizer Render) 1412 ?1998 by Prentice Hall, Inc. A Simon