Page 225 - Orlicky's Material Requirements Planning

204 PART 3 Managing with the MRP System

FIGURE 11-4
Period
Regular update
logic following 1 2
release of order
for item B.
Schedule Receipts 20
Part A On Hand

Planned-Order Releases

Gross Requirements
Allocated 20 Regular
Logic
Part B Schedule Receipts 18
On Hand 2 0 0
Planned-Order Releases 0

Gross Requirements 0
Allocated 18
Part C
Schedule Receipts
On Hand 30 12 12

The problem then becomes one of component requisitioning (for the transient sub-
assembly’s parent orders), and it must be solved by modifying the procedure that gener-
ates material requisitions. When some transient subassemblies are on hand, two requisi-
tions will have to be generated, one for the quantity of the transient subassembly on hand
and one for the balance of the order for the subassembly’s component items. In the Figure
11-5 example, these quantities are 2 and 18, respectively.

PRODUCT MODEL DESIGNATIONS

A product line consists of a number of product models or product families. The market-
ing organization normally forecasts sales in terms of models, management thinks in
terms of models, and the MPS also may be stated in terms of models. In cases of highly
engineered products with many optional features, however, model identities are not fully
meaningful for purposes of MRP because the model designations fail to provide a precise
and complete product definition.