Operations Management

Operations Management

Discussion Questions 3-4

1). What is the difference between a gross requirement plan and a net requirement plan?
The difference between a gross requirement plan and net plan is that a net plan adjusts for on hand inventory and scheduled receipts at each level.

4). How does MRP II differ from MRP?
The difference between MRP and MRP II is that MRP II includes functions like order entry, invoicing, billing, purchasing, production scheduling etc. within the firm in addition to the management of dependent demand inventories.

7). MRP is more than an inventory system, what additional capabilities does MRP possess?
MRP is a part of the production planning process, its most important capability includes the timing/ scheduling factor in inventory planning.

11). What is the rationale for
(a) a phantom bill of material is a subassembly that exist only on the production line, these items are never inventoried.
(b) a planning bill of material may be used to issue a mixture of parts that only makes sense to reduce material handling.
(c) a pseudo bill of material is another name for planning bill to meet the same conditions.

12). Identify five specific requirements of an effective MRP system.
A good schedule of what is to be made
An accurate Bill of Material (BOM)
Accurate inventory records
Accurate purchase data
Lead times that will be met

18). Use the web or other sources to identify what an ERP vendor includes in these software modules.
a). PeopleSoft includes the following in its Customer relation’s management package
Supplier relationship management including indirect and direct goods, as well as services procurement with:
Partner relationship management
Sales solution
Service solution
CRM analytics
CRM industry solutions
Marketing solution
b). SAP’s Supply-Chain Management product includes:
Supply strategy development
Supplier qualification
Supplier selection
Contract negotiation and management
c). SAP’s...

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