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Chapter 4: Q5OQ. (page 580)

What are the three primary data sources used by the MRP sources?

Short Answer

Expert verified

The three primary data sources that are used by the MRP sources:

  1. A Bill-of-Materials
  2. A Master Schedule
  3. An Inventory record file

Step by step solution

01

Three Primary data sources

  1. Bill-of-Materials: It contains the whole information about the product to be prepared.
  2. Master Schedule: The detailed planning process tracks manufacturing output and compares it to customer orders.
  3. Inventory record file: It collects the information about the product that is going to be prepared.
02

Reason why these primary data sources are used by the MRP source

These three primary data sources help and enable arriving at the invoice of materials or the merchandise, which is one of the inputs for the MRP system. All the data input into the MRP sources is the result of all the information input from these three main sources.

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Most popular questions from this chapter

Explain the need for the time fences in the master production schedule.

What are the advantages and disadvantages of aggregating demand from a forecasting view? Are there other things that should be considered when going from multiple DC’s to one DC?

Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring, 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall, you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent stock-outs at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, \(100 for each temp; layoff, \)200 for each worker laid off; inventory holding, \(5 per unit-quarter; backorder, \)10 per unit; straight time, \(5 per hour; over time, \)8 per hour. Assume that the productivity is 0.5 units per worker hour, with eight hours per day and 60 days per season.

Question:What is the term for forecasts used for making day-to-day decisions about meeting demand?

Distinguish between in-process inventory, safety stock inventory, and seasonal inventory.
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