Question

Suppose the company has just received an order for 40 mission oak dining room sets. Briefly list the kinds of information the company will need to plan, schedule, and process the job. Describe how an MRP system would support this activity.

Answer 1

THE INFORMATION THAT COMPANY NEEDS IS SUMMARIZED BELOW:

1. Request Date: Date on which the customer expects to recieve the order
2. Expected Schedule Date: The customers must be communicated the expected delivery date of their shipment after going through the invenory and distance of the shipment.
3. Configuration: Customer requirements must be considered before finalizing the order. The customer must be asked to provide configuration details like coloyr, size, material etc.
4. Material requirement: The company has to determine the requirements of material based on the configuration provided by the customers.
5. Make or Buy: This is a critical decision that company has to make. The company has to decide whether the components are to be provided from the company itself or they are to te outsourced.
6. Expected time of completion of the processing.
7. Expected Shipping date.

Describe how an MRP system would support this activity.

Material Resource Planning enables the company to plan, source, schedule and process the order based on inventory. Material Resource Planning provides an estimate of materials that are available with the company; materials that are to sourced; materials that will arrive and materials that are not available. It will help the company to determine scheduling and outsourcing.