RESOURCE PLANNING SYSTEMS

RESOURCE PLANNING SYSTEMS

WRITE A SHORT SUMMARY OF THE CHAPTER 6 (250 WORDS)

12 POINT TIMES NEW ROMAN, DOUBLE SPACED

WHAT 3 THINGS YOUR LEARNED?

THE BOOK IS : PRINCIPLES OF SUPPLY CHAIN MANAGEMENT: A BALANCED APPROACH, 3RD EDITION” Joel D. Wisner, Keah-Choon Tan, G. Keong Leong

CHAPTER 6

RESOURCE PLANNING SYSTEMS

If you are‘waste conscious,’you already understand that time spent producing partsthat will not be shipped out for some time is overproduction, and this wastes resources.Other wastes, such as over-processing parts, also drain resources.1It’s not just about profits—although that will always remain the ultimate goal for anyenterprise. However, in today’s supply chain, there are other factors in play. You mightwant to temporarily forsake profitability in pursuit of market share. You might want toemphasize different production volumes and different profit margins for strategicreasons. Today, cost-effectiveness and competitiveness are the strategic levers thatexecutives are seeking to run their businesses with maximum flexibility.

2Learning Objectives After completing this chapter, you should be able to

•Understand the chase, level and mixed aggregate production strategies.

•Describe the hierarchical operations planning process in terms of materialsplanning (APP, MPS, MRP) and capacity planning (RRP, RCCP, CRP).

•Know how to compute available-to-promise quantities, MRP explosion and DRPimplosion.

•Understand the limitations of legacy MRP systems, and why organizations aremigrating to integrated ERP systems.

•Describe an ERP system, and understand its advantages and disadvantages.•Understand best-of-breed versus single integrator ERP implementations.

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