2. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Chapter 12 Resource Planning

3. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Learning Objectives Be Able To Apply Concepts Listed In Learning Goals Be Able To Use Formulas Listed In The Equation Summary of Chapter

4. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Material Requirements Planning (MRP)

5. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. MRP Computer Based System Explodes Master Production Schedule (MPS) Into Required Amounts of Raw Materials & Subassemblies to Support MPS Nets Against Current Orders & Inventories to Develop Production & Purchased Material Ordering Schedules

6. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Objectives of MRP Improve Customer Service Reduce Inventory Investment Improve Plant Operating Efficiency

7. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Order Changes Order PlanningReport Elements of MRP MRPSystem Planned Order Schedule Inventory Transaction Data Bill of Materials File Materials File MasterProductionSchedule Inventory Status File Service-Parts Orders and Forecasts Performance Performance Action Notices InputsOutputs

8. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. MRP Computer Program Begins With Number of End Items Needed Add Service Parts Not Included in MPS Explode MPS Into Gross Requirements by Consulting Bill of Materials File Modify Gross Requirements to Get Net Requirements: Net Requirements = Gross Requirements + Allocated Inventory + Safety Stock - Inventory On Hand Offset Orders to Allow for Lead Time

9. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Material Requirements Plan Inputs Bills of materials Engineering and process designs

10. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Material Requirements Plan Inputs Bills of materials Engineering and process designs Other sources of demand Authorized master production schedule

11. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Material Requirements Plan Inputs Inventory transactions Inventory records Bills of materials Engineering and process designs Other sources of demand Authorized master production schedule

12. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Material Requirements Plan Explosion Inventory transactions Inventory records Bills of materials Engineering and process designs MRPexplosion Other sources of demand Authorized master production schedule

13. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Material Requirements Plan Output Inventory transactions Inventory records Bills of materials Engineering and process designs Material requirements plan MRPexplosion Other sources of demand Authorized master production schedule

14. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Bill of Materials Seat cushion Seat-frame boards Front legs A Ladder-back chair Back legs Leg supports Back slats

15. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Bill of Materials Back slatsSeat cushion Seat-frame boards Leg supports Front legs Back legs A Ladder-back chair J (4) Seat-frame boards C (1) Seat subassembly D (2) Front legs B (1) Ladder-back subassembly E (4) Leg supports ALadder-backchair I (1) Seat cushion H (1) Seat frame G (4) Back slats F (2) Back legs Level Code 0 1 2 3

16. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Master Production Schedule 200 Ladder-back chair Kitchen chair Desk chair 12 AprilMay 670 345678 200 150 120 200 150 200 120 Aggregate production plan for chair family 670

17. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Inventory Record Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00

18. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Inventory Record Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 Explanation: Gross requirements are the total demand for the two chairs. Projected on-hand inventory in week 1 is 37 + 230 – 150

19. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Inventory Record Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 Explanation: Gross requirements are the total demand for the two chairs. Projected on-hand inventory in week 1 is 37 + 230 – 150 = 117 units.

20. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Inventory Record Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 Projected on-hand inventory balance at end of week t Inventory on hand at end of week t - 1 Gross requirements in week t Scheduled or planned receipts in week t =+–

21. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Inventory Record Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 – 3 –153–273–273 Projected on-hand inventory balance at end of week t Inventory on hand at end of week t - 1 Gross requirements in week t Scheduled or planned receipts in week t =+–

22. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117–3 – 3 –153 – 273 Planned Orders Explanation: Without a new order in week 4, there will be a shortage of three units: 117 + 0 + 0 – 120 = – 3 units.

23. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 Planned Orders Explanation: Adding the planned receipt brings the balance to 230 117 + 0 + 230 – 120 = 227 units.

24. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 Planned Orders Explanation: Adding the planned receipt brings the balance to 230 117 + 0 + 230 – 120 = 227 units.

25. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 Planned Orders Explanation: Offsetting for a two-week lead time puts the corresponding planned order release back to week 2.

26. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 Planned Orders Explanation: Offsetting for a two-week lead time puts the corresponding planned order release back to week 2.

27. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 227 77 –43 Planned Orders Explanation: The first planned order lasts until week 7, when projected inventory would drop to – 43.

28. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 227 77 230 Planned Orders Explanation: 230 Adding the second planned receipt brings the balance to 77 + 0 + 230 – 120 = 187.

29. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 227 77 230 Planned Orders Explanation: 230 Adding the second planned receipt brings the balance to 77 + 0 + 230 – 120 = 187. 187

30. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 227 77 230 187 230 Planned Orders Explanation: The corresponding planned order release is for week 5.

31. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Planned Orders Item: C Description: Seat subassembly Lot Size: 230 units Lead Time: 2 weeks Gross requirements 150 1 230 117 0 2 0 0 3 0 120 4 0 5 0 150 6 0 120 7 0 8 0 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 00 117117 227 230 230 227 77 230 187 230 187

32. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Lot-Sizing Rule Comparison  The FOQ rule generates high average inventory because it creates remnants.  The POQ rule reduces average on-hand inventory because it does a better job of matching order quantity to requirements.  The L4L rule minimizes inventory investment but maximizes the number of orders placed.

33. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Safety Stock

34. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. MRP Outputs MRP explosion

35. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. MRP Outputs Material requirements plan Action notices  Releasing new orders  Adjusting due dates Priority reports  Dispatch lists  Supplier schedules Capacity reports  Capacity requirements planning  Finite capacity scheduling  Input-output control MRP explosion

36. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. MRP Outputs Material requirements plan Action notices  Releasing new orders  Adjusting due dates Priority reports  Dispatch lists  Supplier schedules Capacity reports  Capacity requirements planning  Finite capacity scheduling  Input-output control MRP explosion Routings and time standards

37. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. MRP Outputs Material requirements plan Action notices  Releasing new orders  Adjusting due dates Priority reports  Dispatch lists  Supplier schedules Capacity reports  Capacity requirements planning  Finite capacity scheduling  Input-output control MRP explosion Manufacturing resources plan Performance reports Routings and time standards

38. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. MRP Outputs Material requirements plan Action notices  Releasing new orders  Adjusting due dates Priority reports  Dispatch lists  Supplier schedules Capacity reports  Capacity requirements planning  Finite capacity scheduling  Input-output control MRP explosion Manufacturing resources plan Performance reports Cost and price data Routings and time standards

39. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. MRP Explosion Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Gross requirements 150 1 230 117 23 120 45 150 6 120 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 37 Week 117 117 0000 000 0000 227 77187 230

40. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Gross requirements 150 123 120 45 150 6 120 78 Planned receipts Planned order releases Week 0000 230 MRP Explosion

41. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Gross requirements 150 123 120 45 150 6 120 78 Planned receipts Planned order releases Week 0000 230 MRP Explosion Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 1 0 2345678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 40 Week 000 300000 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 1 0 2345678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 0 Week 000 0000

42. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Gross requirements 150 123 120 45 150 6 120 78 Planned receipts Planned order releases Week 0000 230 Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 0 1 0 2345678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 40 Week 230 000 300000 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 0 1 0 2345678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 0 Week 230 000 0000 Usage quantity: 1 MRP Explosion

43. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Gross requirements 150 123 120 45 150 6 120 78 Planned receipts Planned order releases Week 0000 230 Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 0 1 0 23 0 45678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 40 Week 230 0 000 300000 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 0 1 0 23 0 45678 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 0 Week 230 0 000 0000 Usage quantity: 1 MRP Explosion

44. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: Seat subassembly Lot size: 230 units Lead time: 2 weeks Gross requirements 150 123 120 45 150 6 120 78 Planned receipts Planned order releases Week 0000 230 Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 0 1 0 40 23 0 45 0 6 0 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 40 Week 110110 230 00 000 300000 110180 300 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 0 1 0 0 23 0 45 0 6 0 78 Scheduled receipts Projected on-hand inventory Planned receipts Planned order releases 0 Week 00 230 00 000 0000 00000 MRP Explosion

45. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 300 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 230 0000 00 0000 00 MRP Explosion

46. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 300 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 230 0000 00 0000 00 Gross requirements 1 0 2345678 Scheduled receipts Planned receipts Planned order releases 200 Week 000 0000 Projected on-hand inventory Item: Seat-frame boards Lot size: 1500 units Lead time: 1 week MRP Explosion

47. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 300 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 230 0000 00 0000 00 Gross requirements 0 1 0 23 1200 45 0 6 0 78 Scheduled receipts Planned receipts Planned order releases 200 Week 0000 000 0000 Projected on-hand inventory Item: Seat-frame boards Lot size: 1500 units Lead time: 1 week Usage quantity: 4 MRP Explosion

48. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Item: Seat frames Lot size: 300 units Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 300 Item: Seat cushion Lot size: L4L Lead time: 1 week Gross requirements 12345678 Planned receipts Planned order releases Week 230 0000 00 0000 00 Gross requirements 0 1 0 200 23 1200 45 0 6 0 78 Scheduled receipts Planned receipts Planned order releases 200 Week 200200 0000 000 0000 500 1500 Projected on-hand inventory Item: Seat-frame boards Lot size: 1500 units Lead time: 1 week MRP Explosion

49. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. CRP

50. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. CRP Tests MPS for Feasibility Utilizes Routings to Determine Labor/Machine Loads If Schedule Feasible, Recommends Freezing If Schedule Overloads Resources, Points Out Processes That Are Overscheduled

51. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Load Schedules Compares Actual Labor and Machine Hours Against Available Hours Offsets Schedules Between Successive Stages of Production by Lead Times Provides Feasible MPS and Economically Loaded Work Centers Promotes System Operating Efficiency... Lowers Costs!

52. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Capacity Requirements Date:Week: 32 Plant 01 Dept. 03: Lathe Station Capacity: 320 hours per week Week 323334353637 Planned hours90156349210360280 Actual hours Total hours

53. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Capacity Requirements Date:Week: 32 Plant 01 Dept. 03: Lathe Station Capacity: 320 hours per week Week 323334353637 Planned hours90156349210360280 Actual hours21010441000 Total hours

54. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Capacity Requirements Date:Week: 32 Plant 01 Dept. 03: Lathe Station Capacity: 320 hours per week Week 323334353637 Planned hours90156349210360280 Actual hours21010441000 Total hours300260390210360280

55. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Capacity Requirements Explanation: Projected capacity requirements exceed weekly hours of capacity. Date:Week: 32 Plant 01 Dept. 03: Lathe Station Capacity: 320 hours per week Week 323334353637 Planned hours90156349210360280 Actual hours21010441000 Total hours300260390210360280

56. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. MRP II Inventory records Inventory transactions Bills of materials Routings Time standards MRPexplosion Master production schedule Customer ordersForecasts Figure 12.11

57. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. MRP II Figure 12.11 Material requirements plan Inventory records Inventory transactions Bills of materials Routings Time standards MRPexplosion Master production schedule Customer ordersForecasts

58. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. MRP II Figure 12.11 Material requirements plan Inventory records Inventory transactions Bills of materials Routings Time standards MRPexplosion Master production schedule Manufacturing resource plan Cost and financial data Customer ordersForecasts

59. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. MRP II Figure 12.11 Material requirements plan Inventory records Inventory transactions Bills of materials Routings Time standards MRPexplosion Master production schedule Manufacturing resource plan Cost and financial data Purchasing reports Financial/ accounting reports Sales and marketing reports Human resource reports Manufacturing reports Customer ordersForecasts

60. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Distribution Requirements Planning Retail stores

61. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Distribution Requirements Planning Retail stores Distribution centers

62. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Distribution Requirements Planning Retail stores Distribution centers Plants

63. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Bill of Resources (a) Level 1 Discharge Level 2 Intermediate care Level 3 Postoperative care (Step down) Level 4 Postoperative care (Intensive) Level 7 Postoperative care (Testing) Level 5 Surgery Level 6 Postoperative care (Angiogram)

64. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Bill of Resources Level 6 Postoperative care (Angiogram) (b) (a) Level 1 Discharge Level 2 Intermediate care Level 3 Postoperative care (Step down) Level 4 Postoperative care (Intensive) Level 7 Postoperative care (Testing) Level 5 Surgery Level 6 Postoperative care (Angiogram)

65. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Bill of Resources Level 6 Postoperative care (Angiogram) (b) (a) Level 1 Discharge Level 2 Intermediate care Level 3 Postoperative care (Step down) Level 4 Postoperative care (Intensive) Level 7 Postoperative care (Testing) Level 5 Surgery Level 6 Postoperative care (Angiogram)

66. To Accompany Ritzman & Krajewski Foundations of Operations Management, © 2003 Prentice Hall, Inc. All rights reserved. Bill of Resources (a) Level 1 Discharge Level 2 Intermediate care Level 3 Postoperative care (Step down) Level 4 Postoperative care (Intensive) Level 7 Postoperative care (Testing) Level 5 Surgery Level 6 Postoperative care (Angiogram) Nurse (6 hr) MD (1 hr) Therapy (1 hr) Bed (24 hr) Lab (3 tests) Kitchen (1 meal) Pharmacy (10 medicines) (b) Level 6 Postoperative care (Angiogram)