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1. Introduction
   1. Def - MRP - a technique for planning the quantity and timing of dependent-demand items by:
      1. Exploding component requirements from end item demand         (p570)
      2. Adjusting component production schedules for leadtimes
      3. Subtracting available inventory to determine production quantities.
   2. *Objectives of MRP
      1. Ensure availability of materials
      2. Minimize inventory costs
   3. MRP Inputs
      1. Master Production Schedule - time and quantity of desired end item products.
         See Fig 14.2, p564
      2. *Bill-of-Material File (Product Structure File) - a list of the number of components and the required lead times for each end item, assembly, subassembly, . . . 
         See Example 1 - p565, Fig 14.4, - p568
      3. Inventory Status File - quantity on hand, scheduled delivery dates - p570
   4. *MRP Outputs
      1. Planned Order Release Report for production and purchasing depts. (p570)
      2. Revision Notices due to cancellations, delays, shortages
      3. Performance Reports on deliveries, costs, quality, . . .
                    Note: MRP systems are available for PCs
2. Capacity Requirements Planning    (p579)
   1. Def - CRP - a technique for planning the personnel and equipment capacities by:
      1. Converting tentative orders (from MRP) into std labor and machine hrs
      2. Adding to existing work center loading to determine total work center loading
      3. Modifying capacity and/or Master Production Schedule
   2. *Objectives of CRP
      1. Ensure availability of personnel and equipment capacities
      2. Minimize excess capacity costs
3. Material Resource Planning II (also called Closed-Loop MRP)    (p579)
   1. Def - MRP II - a system that tightly integrates MRP and CRP.
   2. MRP II beneficial in services, such as accounting firms, restaurants, hospitals.
4. Enterprise Resource Planning (ERP)         (p582)
   1. Def - ERP - a modular MRP II system that includes direct (EDI - electronic data interchange and Internet) interfaces with customers and suppliers.
   2. ERP Modules (p583)
      1. Human Resources (HR) - includes workforce planning, training and development, . . .
      2. Finance - includes activity-based costing, investment management, . . .
      3. Customer Relationship Management (CRM) - focuses on managing customers, rather than products.
      4. Supply Chain Management (SCM) - simplifies interactions with suppliers for deliveries, quality assurance, contracts, . . .
   3. ERP modules are fully integrated using a common database.         (p584)
   4. ERP systems are a critical component for successful supply chain management (Ch 11).
                           (This page was last edited on October 22, 2009 .)