The process within TB Figure 15.3, Bubble 3.0 might be described as follows: After the master production schedule is determined, an important step in completing the production in a timely manner is identifying, ordering, and receiving materials. Materials requirements planning is a process that uses bills of material, raw material and WIP inventory status data, open order data, and the master

Question

production schedule to calculate a time-phased order requirements schedule for materials and subassemblies. The schedule shows the time period when a manufacturing order or purchase order should be released so that the subassemblies and raw materials will be available when needed. The process involves working backward from the date production is to begin to determine the timing for manufacturing subassemblies and then moving back further to determine the date that orders for materials must be issued into the purchasing process. In an enterprise system, this process is performed automatically, using a variety of data from the enterprise database including:

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Bills of materials, showing the items and quantities required as developed by engineering.

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Parts master data, which contains information about part number, description, unit of measure, where used, order policy, lead time, and safety stock.

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Raw materials and WIP inventory status data showing the current quantities on hand, and quantities already reserved for production for the materials and subassemblies.

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Open purchase order data showing the existing orders fo

Answer 1