Discuss the meaning of MRP terms such as planned order release and scheduled order receipts.
Please respond to the following essay questions. You are required to answer all 10 questions.
Question # 1: Discuss the meaning of MRP terms such as planned order release and scheduled order receipts.
Question # 2: Contrast the significance of the term lead time in the traditional EOQ context and in an MRP system.
Question # 3: What are the sources of demand in an MRP system? Are these dependent or independent, and how are they used as inputs to the system?
Question # 4: In an agreement between a supplier and a customer, the supplier must ensure that all parts are within tolerance before shipment to the customer. What would be the effect on the cost of quality to the customer?
Question # 5: In the situation described in Question 4, what would be the effect on the cost of quality to the supplier?
Question #6: Distinguish between in-process inventory, safety stock inventory, and seasonal inventory.
Question # 7: Discuss the nature of the costs that affect inventory size. How does shrinkage (stolen stock) contribute to the cost of carrying inventory? How can this cost be reduced? How does obsolescence contribute to the cost of carrying inventory? How can this cost be reduced?
Question # 8: Under which conditions would a plant manager elect to use a fixed-order quantity model as opposed to a fixed-time period model? What are the disadvantages of using a fixed-time period ordering system?
Question # 9: Discuss ways to use lean to improve one of the following: a pizza restaurant, a hospital, or an auto dealership.
Question # 10: What recent changes have caused supply chain management to gain importance?