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Lecture Advances in supply chain management - Chapter 16

This chapter explain the terms supply chain and logistics; name the key aspects of supply chain management; list, and briefly explain, current trends in supply chain management; outline the benefits and risks related to outsourcing;. | Advances in Supply Chain Management Part 2 Chapter 11: Purchasing and Material Requirements Planning Lec 16 : Learning Objectives To explain the Basics of Material Requirements Planning Detailed understanding of Generation and Timing of Uncritical Orders Quantity Discounts and Supplier Selection. To describe the way APS can support the selection of suppliers and the decisions on order sizes, taking into account the specific cost functions of suppliers, which often allow for quantity discounts (Sect.11.3). This may apply to input materials for production, indirect materials and articles of merchandise. SUMMARY of Last Lecture The lecture has described the underlying decision situations using APS in production planning and scheduling. It included the discussion of how to proceed from a model to a solution. Steps of model building were explained in detail. Further, optimized solution of up dating a production schedule through advanced software was also discussed with the help of an example. LAYOUT Basics of Material Requirements Planning Generation and Timing of Uncritical Orders Quantity Discounts and Supplier Selection Simple example to illustrate the decision situation Basics of Material Requirements Planning Material Requirements Planning (MRP) is regarded as the core engine of an ERP system, which calculates time-phased plans of secondary demands for components and parts based on a time series of primary demands (usually finished products). Time-phased secondary demands are a prerequisite for generating production or replenishment orders so that demands for finished products can be met in time with as little work-in-process and inventory as possible. Although most appealing, this logic suffers from ignoring available capacities. Consequently, production orders may result in overloaded capacities and thus infeasibilities. Experience has shown that a two step procedure, i.e. first calculating all secondary demands and then balancing capacities by means | Advances in Supply Chain Management Part 2 Chapter 11: Purchasing and Material Requirements Planning Lec 16 : Learning Objectives To explain the Basics of Material Requirements Planning Detailed understanding of Generation and Timing of Uncritical Orders Quantity Discounts and Supplier Selection. To describe the way APS can support the selection of suppliers and the decisions on order sizes, taking into account the specific cost functions of suppliers, which often allow for quantity discounts (Sect.11.3). This may apply to input materials for production, indirect materials and articles of merchandise. SUMMARY of Last Lecture The lecture has described the underlying decision situations using APS in production planning and scheduling. It included the discussion of how to proceed from a model to a solution. Steps of model building were explained in detail. Further, optimized solution of up dating a production schedule through advanced software was also discussed with the help of .