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By Marco Minnemann

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Mix specifications are determined by each operation unit’s planners at the beginning of each week for the next four weeks based on the most updated available information. Only quantities and types of end item for the next week are considered frozen. 18. MRP is adopted to determine quantities and timing for suppliers. At the beginning of each week, based on the consumptions estimated by the MRP for that week, raw materials and components are requested to suppliers in order to replenish inventory.

2. 3. 4. 5. transaction processing; operational planning; analysis and learning; documentation; and training. Transaction processing means entering basic data, updating simple records, and collecting data on actual activities. Entering a customer order, receiving materials to stock, or collecting data on hours worked are examples of simple transactions. Operational planning, analysis, and learning are complex tasks involving analysis, risk-taking, decision making, and alternative solutions evaluation.

A critical activity that parallels developing material plans is developing capacity plans. The MPS is a primary data source for capacity planning. Insufficient capacity quickly leads to problems in delivery performance and work-in-process inventories. On the other hand, excess capacity might be a needless expense. While the resource planning is directly linked to the production planning module, the MPS is the primary information source for rough-cut capacity planning. A particular MPS’s rough-cut capacity requirements can be estimated by several techniques: capacity planning using overall planning factors (CPOF), capacity bills, or resource profiles (Vollmann et al.

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