1. Material Requirement Planning (MRP1)

13. Overview of the MRP System Product Structure File Master Production Schedule Inventory Master File Material Requirements Planning Manufacturing Orders Purchase Orders Various Reports

16. Bill-of-Material Product Structure Tree PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc. Upper Saddle River, N.J. 07458 14- Bicycle(1) P/N 1000 Handle Bars (1) P/N 1001 Frame Assembly (1) P/N 1002 Wheels (2) P/N 1003 Frame (1) P/N 1004

22. Example of the MRP Process Item: A Low-Level Code: 1 Lot Size: 25 Lead Time: 1 PD 1 2 3 4 5 Gross Requirements 10 15 25 25 30 Scheduled Receipts 25 Projected on Hand 20 Net Requirements Planned Order Receipts Planned Order Releases

23. Example of the MRP Process Item: A Low-Level Code: 1 Lot Size: 25 min Lead Time: 1 PD 1 2 3 4 5 Gross Requirements 10 15 25 25 30 Scheduled Receipts 25 Projected on Hand 20 10 20 20 20 15 Net Requirements 5 5 10 Planned Order Receipts 25 25 25 Planned Order Releases 25 25 25 30 25

24. Inputs to the Production Plan PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc. Upper Saddle River, N.J. 07458 14- Aggregate 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

25. The Planning Process PowerPoint presentation to accompany Operations Management, 6E (Heizer & Render) © 2001 by Prentice Hall, Inc. Upper Saddle River, N.J. 07458 14- Production Plan Execute Material Plans Master Production Schedule Material Requirements Plan Capacity Requirements Plan Execute Capacity Plans Realistic?? No Yes