Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Textbook Question
Chapter 14, Problem 1DQ
What is the difference between a gross requirements plan and a net requirements plan?
Expert Solution & Answer
Summary Introduction
To determine: The difference between gross requirements and the net requirements plan.
Introduction:
Gross requirements plan:
The gross requirements plan is the plan where the independent and dependent demand for a product or a component before the on-hand inventory and the scheduled receipts are netted with.
Net requirements plan:
The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on hand and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.
Explanation of Solution
Difference between gross and net requirements concept:
| Gross requirements plan | Net requirements plan |
| It is the plan which is made prior to subtraction of inventory on hand and scheduled receipts. | It is the plan which will take into considerationof the scheduled receipts and inventory on hand before the plan is made. |
| The plan is the requirement which needs to be made and the production to be started. | If the requirement is fewer than the stock, the planned order release will be made for the item. |
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In gathering requirements, both structured and unstructured techniques could be used. Discuss.
Given the following product structure, master production schedule, and inventory status below and assuming the requirements for each BOM item is 1: (a) develop a gross requirements plan for Item C; (b) develop a net requirements plan for Item C.
Click the icon to view the product structure, master production schedule and inventory status.
a) Develop a gross requirements plan for Items C. To do so, first find the gross requirements plans for its parents: items A and H. (Enter your responses as whole numbers).
Week
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1
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Gross requirements: H
Item
A
B
BUDE
E
A
On
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15
110
60
40
85
с
8
100
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Time
1
2
2
1
2
Q
9
90
Item
LUISY
8
100
10
60
9
0
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80
65
20
110
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H
K
11
0
12
160
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1
1
2
2
12
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G
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Given the following product structure, master production schedule, and inventory status below and assuming the requirements for each BOM item is 1: (a) develop a
gross requirements plan for Item C; (b) develop a net requirements plan for Item C.
Click the icon to view the product structure, master production schedule and inventory status.
a) Develop a gross requirements plan for Items C. To do so, first find the gross requirements plans for its parents: items A and H. (Enter your responses as whole
numbers).
Item
A Gross req
1
2
More Info
3
Period
Gross requirements: A
Gross requirements: H
Item
A
B
C
D
E
4
A
On
Hand
15
110
60
40
85
5
Week
6 7
8
100
Lead
Time
1
2
2
1
2
Q
9
90
8
Item
F
G
H
E
J
K
10
60
9
On
Hand
80
65
20
110
110
10
11
50
E
H
K
11 12
12
160
Lead
Time
2
1
1
2
2
G
C
■
G
X
Chapter 14 Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Ch. 14 - What is the difference between a gross...Ch. 14 - Prob. 2DQCh. 14 - What are the similarities between MRP and DRP?Ch. 14 - How does MRP II differ from MRP?Ch. 14 - Which is the best lot-sizing policy for...Ch. 14 - What impact does ignoring carrying cost in the...Ch. 14 - MRP is more than an inventory system; what...Ch. 14 - What are the options for the production planner...Ch. 14 - Master schedules are expressed in three different...Ch. 14 - What functions of the firm affect an MRP system?...
Ch. 14 - Prob. 11DQCh. 14 - Identify five specific requirements of an...Ch. 14 - What are the typical benefits of ERP?Ch. 14 - What are the distinctions between MRP, DRP, and...Ch. 14 - As an approach to inventory management, how does...Ch. 14 - What are the disadvantages of ERP?Ch. 14 - Use the Web or other sources to: a. Find stories...Ch. 14 - Prob. 18DQCh. 14 - Use the Web or other sources to identify what an...Ch. 14 - You have developed the following simple product...Ch. 14 - You are expected to have the gift bags in Problem...Ch. 14 - Prob. 3PCh. 14 - Prob. 4PCh. 14 - The demand for subassembly S is 100 units in week...Ch. 14 - Using the information in Problem 14.3, construct a...Ch. 14 - Using the information in Problem 14.3, construct a...Ch. 14 - Refer again to Problems 14.3 and 14.4. In addition...Ch. 14 - Refer again to Problems 14.3 and 14.5. In addition...Ch. 14 - a. Given the product structure and master...Ch. 14 - Prob. 11PCh. 14 - Based on the data in Figure 14.13, complete a net...Ch. 14 - Prob. 13PCh. 14 - A part structure, lead time (weeks), and on-hand...Ch. 14 - You are product planner for product A (in Problem...Ch. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Data Table for Problems 14.17 through 14.20 14.17...Ch. 14 - Develop an EOQ solution and calculate total...Ch. 14 - Develop a POQ solution and calculate total...Ch. 14 - Using your answers for the lot sizes computed in...Ch. 14 - Prob. 26PCh. 14 - Grace Greenberg, production planner for Science...Ch. 14 - Karl Knapps, Inc., has received the following...Ch. 14 - Coleman Rich, Ltd., has received the following...Ch. 14 - Prob. 31PCh. 14 - Using the data for the coffee table in Problem...Ch. 14 - When 18,500 Orlando Magic Fans Come to Dinner...Ch. 14 - When 18,500 Orlando Magic Fans Come to Dinner...Ch. 14 - When 18,500 Orlando Magic Fans Come to Dinner...Ch. 14 - MRP at Wheeled Coach Video Case Wheeled Coach, the...Ch. 14 - MRP at Wheeled Coach Video Case Wheeled Coach, the...Ch. 14 - MRP at Wheeled Coach Video Case Wheeled Coach, the...
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Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY