Production Planning and Cost Optimization

📋 Course Outline

1. Material Requirements Planning (MRP) and Master Production Schedule (MPS) concepts
2. Capacity Planning and Capacity Requirement Planning (CRP) in production scheduling
3. Order splitting and scheduling alternatives to manage capacity constraints
4. Lot-sizing methods and their impact on production and inventory costs
5. Economic Order Quantity (EOQ) and Part Period Balancing (PPB) lot sizing methods with cost calculations
6. Comparative analysis of lot sizing methods: L4L, EOQ, and PPB for cost optimization
7. Application of EOQ and PPB techniques in MRP tables and cost evaluation
8. Statistical demand forecasting, safety stock, and minimizing total costs through optimal order quantity

📖 1. Material Requirements Planning (MRP) and Master Production Schedule (MPS) concepts

🔑 Key Concepts & Definitions

• Material Requirements Planning (MRP) : Uber Easts type contracts = “zero-hour contracts” Work when there is work, flexible work force = contractors
• Bill of Materials (BOM) : Uber Easts type contracts = “zero-hour contracts” Work when there is work, flexible work force = contractors
• Planning (MRP) ▪ Master production schedule : Uber Easts type contracts = “zero-hour contracts” Work when there is work, flexible work force = contractors

📝 Essential Points