MRP theory

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bull-whip effect
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small order changes in downstream demand lead to large upstream variation -> high unwanted inventories
lumpy demand effect
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Rip systems not first for unexpected, high demands
unreliability effect
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FG product consists of 5 parts, each of availability of 95%, then FG availability 77%
BOM
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bills of material
special BOMs
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modular bills, planning bills, phantom bills (used for subassies that exist temporarily
MRP requirements
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computer system necessary, mainly discrete products, accurate bill-of-material, accurate inventory status, stable lead time, problem with frequent re-planning
Four periods in the Rolling MPS
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Frozen - until week 4, new orders cannot enter and we can't change them; Firm - orders confirmed by customers; Full - we can shift things; Open - we can still assemble orders, we don't have to plan yet

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