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16 Cards in this Set

  • Front
  • Back
MRP (Materials requirements planning)
computer-based information system that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials, working backward from the due date using lead times and other information to determine when and how much to order
Dependent demand
demand for items that are subassemblies or component parts to be used in production of finished goods

- demand is certain
MRP II (Manufacturing Resource Planning)
expanded MRP with emphasis placed on integration
- financial planning
- marketing
- engineering
- purchasing
- manufacturing
ERP (enterprise resource planning)
- next step in evolution that began with MRP and evolved into MRP II
- integrations of financial, manufacturing, and human resources on a single computer system
- expanded effort to integrate standardized record keeping that will permit "information sharing" among different areas of an organization
Primary MRP inputs
master schedule
inventory records
Master schedule
one of three primary inputs in MRP; states which end items are to be produced, when these are needed, and in what quantities
Bill of materials (BOM)
one of the three primary inputs of MRP; a listing of all of the raw materials, parts, subassemblies, and assemblies needed to produce one unit of product
Inventory records
one of three primary inputs in MRP; includes information on the status of each item by time period
Primary MRP outputs
Primary reports (main reports):
1. Planned orders
2. Order releases
3. Changes

Secondary reports (optional outputs):
1. Performance-control reports
2. Planning reports
3. Exception reports
Planned orders
schedule indicating the amount and timing of future orders
Order releases
authorization for the execution of planned orders
revisions of due dates or order quantities, or cancellations of orders
Performance-control reports
evaluation of system operation, including deviations form plans and cost information
Planning reports
data useful for assessing future material requirements
Exception reports
data or any major discrepancies encountered
Differences in dependent and independent demand inventory
Independent demand is fairly stable once allowances are made for seasonal variations, but dependent demand tends to be sporadic or "lumpy"; large quantities are used at specific points in time with little or no usage at other times