Operations and Supply Chain Management 9th edition
Operations and Supply Chain Management 9th edition
9th Edition
ISBN: 9781119320975
Author: Roberta S. Russell, Bernard W. Taylor III
Publisher: WILEY
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Chapter 15, Problem 1Q

Describe a production environment in which MRP would be useful. Describe a production environment in which MRP would not be useful.

Expert Solution & Answer
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Summary Introduction

To identify: The production environment where MRP is useful and not useful.

Material Requirement Planning is software-based inventory control for production planning and scheduling in the manufacturing process. The main objective of MRP is to ensure the availability of requirements when it is needed, to maintain the inventory at the lowest possible level, and to plan the activities of scheduling, delivering in the production process.

Explanation of Solution

MRP is useful for complex products which have to assemble by order, for discrete demand items (i.e. the components or subparts of items which do not need to be held in inventory but should be available on time when it is required to make the production process run continually without any delay) and for the dependent demand (i.e. the final product must be dependent on the components or subparts, so it should be held there inventory to make the production process meet the demand).

MRP is useless for small production units with few components with no much variation in demand and output.

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Students have asked these similar questions
The annual demand for water bottles at Mega Stores is 500 units, with an ordering cost of Rs. 200 per order. If the annual inventory holding cost is estimated to be 20%. of unit cost, how frequently should he replenish his stocks? Further, suppose the supplier offers him a discount on bulk ordering as given below. Can the manager reduce his costs by taking advantage of either of these discounts? Recommend the best ordering policy for the store. Order size Unit cost (Rs.) 1 – 49 pcs. 20.00 50 – 149 pcs. 19.50 150 – 299 pcs. 19.00 300 pcs. or more 18.00
Help answer showing level work and formulas
I need to forecast using a 3-Period-Moving-Average-Monthly forecasting model which I did but then I need to   use my forecast numbers to generate a Master Production Schedule (MPS)  I have to Start with actual sales (my own test data numbers) for August-2022 Oct-2022 i need to create MPS to supply demand starting November-2022  April 2023  I just added numbers without applying formulas to the mps on the right side of the spreadsheet because I do not know how to do it. The second image is the example of what it should look like. Thank You.

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Operations and Supply Chain Management 9th edition

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