Management and Organizational Studies 3330A/B Lecture Notes - Lecture 10: Carrying Cost, Safety Stock, Master Production Schedule

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3330A/B
• Professor: jennifer

Document Summary

Mrp: is the key piece of logical that ties the production functions together from a material planning and control view (determining the number of parts, components and materials needed to produce product) How it works: mrp system has essentially three sources of information, master production schedule: states the number of items to be produced during specific time periods, deals with end items. Inventory record file: contains data such as number of units on hand and on order. Example: demand for the meters and components originates from two source: regular customers that place firm orders in advance based on the needs of their projects; and other typically smaller, customers that buy these items as needed. These demands were forecasted based on past demand data, e9. 9 shows the requirements for a and b and subassembly d for a three- month period (months three through five).