33:799:301 Lecture Notes - Lecture 14: Safety Stock, Lead Time

• School: Rutgers University
• Department: Supply Chain Management
• Course: 33:799:301
• Professor: James King

Document Summary

Mrp requires the following info: the independent demand info, parent-component relationships from the bill of materials. 3: lead time and lot size for each component (buy) and time required for each process. Inventory status of final product and components step (make: safety stock amount for each level of the bom. Mrp output > planned order releases (purchase and produce) Independent demand - external demand for the final product affected by trends, seasonal patterns, and general market conditions. Dependent demand - the calculated internal demand for subassemblies and component parts based on the demand of the final product and the planning factor of each part. Planning factor - number of components needed to produce a unit of the parent item. Bill of materials (bom) - a document that shows an inclusive listing of all component parts and assemblies making up final product. Mrp output - planned order releases (purchase and produce) Lead time - duration between order release and receipt.