Question
A). What is infinite loading, and how does it impact Capacity Requirements Planning (CRP) and MRP? How is Distribution Requirements Planning (DRP) used to enhance
A). What is infinite loading, and how does it impact Capacity Requirements Planning (CRP) and MRP? How is Distribution Requirements Planning (DRP) used to enhance supply chains?
B). WhatSPECIFICelements of the concepts of Capacity Requirements Planning (CRP) and Distribution Requirements Planning (DRP) are evident in the 60 Minutes video:Why Startups, NASA pursuing supersonic commercial flight? https://www.youtube.com/watch?v=Usx0Fhl2KFc&t=2s
Please use these aspects of CRP and DRP from what is listed :
The CRP process usesplanned order releases and scheduled receipts to estimate work center loads. A load is the amount of work given to a worker, machine, work center, or facility during a specific period of time. To make sure a plan is feasible, a load profile compares load needs against a profile of actual capacity.
Load profileA comparison of production needs to actual capacity.
Use overtime, but costs increase.
Outsource the production of some products.
Increase delivery lead times or create a backlog of orders, which may reduce customer satisfaction and sales.
If capacity is available, make products in advance and hold in inventory, but holding costs increase.
DRP Planning Process
As with MRP, the planning horizon must extend far enough into the future to schedule replenishment orders in plenty of time to make the necessary shipments.
For each week in the planning horizon, combining forecasts and firm orders, ideally at each customer or as close as possible to the customer, such as a retailer, create gross requirements for finished goods.
Compare the gross requirements with the amount of inventory projected to be on-hand at that location. Order receipts and releases are planned if the projected inventory is less than the estimated gross requirements. Looking back at Figure 14-1, these are the planned order releases for seven retailers.
Combine order releases from all retailers to create gross requirements for the next upstream supply chain member, typically distribution centers. In Figure 14-1 for Retailers 1, 2, and 3, planned order releases are combined to form gross requirements for the Western Region distribution center. Those for Retailers 4, 5, 6, and 7 form the gross requirements for the Eastern Region distribution center.
Compare the schedule of gross requirements at each distribution center against its projected on-hand inventory for each week into the future to create net requirements and planned orders. These orders are combined to make gross requirements for the next upstream supply chain member while considering required lead times.
The process consolidates requirements and orders across all stages in the distribution network up to the production plant that makes the finished goods. At this point, MPS and MRP processes take over.
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