Paul Mahajan Rupinder Khabra Discussion

1 January 2017

Briefly discuss the requirements for effective MRP. The requirements for an effective MRP are having accurate master schedule, inventory records, and bill of materials. If these inputs are not accurate it will be impossible to have accurate MRP results. The results of the MRP are requirements for end items into time-phase requirements for subassemblies, components, and raw materials.

So this shows why the accuracy of our inputs is of utmost importance. If we get the accurate inputs then we get accurate outputs. The outputs of MRP can be changes, order releases, planned-order schedules, inventory transaction, performance control reports, and planning reports. 12. 13 Contrast planned-order receipts and scheduled receipts. Planned-order receipts are the quantity expected to be received by the beginning of the period in which it is shown. Scheduled receipts are open orders scheduled to arrive from vendors or elsewhere in the pipeline.

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So we can see that planned order receipts are supposed to arrive before the scheduled period and scheduled receipts are orders that are open and can show up anytime during the scheduled period. Critical thinking exercise 1 I believe Juan Villa should only use those methods if the required data matches the data needed for the EOQ/ROP methods. We need to follow a method that is best suited for that situation. If we have the forecasted demand and the guidelines follow the ones of the EOQ method then we can think about using that method.

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