Page 72 - Orlicky's Material Requirements Planning
P. 72
CHAPTER 4 Inventory in a Manufacturing Environment 53
FIGURE 4-1 End product
Many small independent demands from customers
Order point and
dependent
demand. Inventory
Order
point
J F M A M J J A S O N
Component of end product
Few large demands dependent on product manufacture
Order
point
J F M A M J J A S O N
Raw material
Few large demands dependent on component manufacture
Order
point
J F M A M J J A S O N
TA B LE 4-1
Comparison of Order-Point and MRP Systems
Order point MRP
Deals with Parts Products
Looks to the Past Future
Uses Averages Batches
Requires bills of material? No Yes
Inventory is Maintained Run out
Recommends order dates to Start Complete
Activated for an order Once Periodically
Shows future orders None All in horizon
Can be replanned? No Yes
