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Material and resource planning (MRP)
MATERIAL AND RESOURCE PLANNING
Materials requirements planning (MRP) and resource (i.e., capacity) planning collectively form the bridge between large-scale, aggregate plans and day-to-day scheduling and fulfillment of particular customer orders. Much of this planning is enabled by the concept of dependent demand, where the need for particular items and/or associated resources is exactly related to the production or delivery of a specific final service or end item. For example, changing and balancing a new set of tires for an automobile at the previously described repair center might require the use of a service bay, 1.5 hours of a mechanic’s time, four tires, and four valve stems. If a customer phones several days in advance to make a service appointment, the resources (i.e., mechanic and service bay) can be immediately booked for the needed time, and appropriate-sized tires can be ordered from a distributor. Scheduling the pickup of the used tires for recycling is also possible. These concepts are developed further in the final two cases in this chapter. Martin Trailers considers both the complications surrounding the development of an aggregate production plan and its translation into materials and resources plans. However, the seasonal nature of the business, multiple product lines, and the necessity of hiring and laying off temporary workers compound the challenge. Illustrious Corp. moves down one level and focuses specifically on developing a detailed, though basic, MRP schedule for a product and a few of its component parts. In summary, by considering the integration of demand management, aggregate planning, and material and resource planning, managers encounter operational elements that are foundational for the effective and efficient delivery of goods and services. Regards, Freight Club |
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