Class notes
Enterprise Resource Planning
- Course
- Institution
This document describes how enterprises plan and allocate their resources to different products.
[Show more]
Seller
Follow
BMAN
Reviews received
Content preview
Enterprise Resource PlanningResource Planning – This means organizing the use of our
resources (labour, materials and time) in the best possible way to
attain the objectives of our business. It can be viewed in a
hierarchical structure –
1. Long-range planning – construction of facilities, major
equipment purchase and other aggregated resource decisions.
Example: Long-range capacity planning.
2. Intermediate-range planning – shows quantity and timing of
end items i.e. Master Production Schedule. It describes the
number and the time each resource needs to perform some
action.
3. Short-range planning – the detailed planning for components,
parts and materials to support the Master Production
Schedule, MRP.
Aggregated Production Plan (APP) – this is the highest level
of resource planning wit the rough quantities of materials and
other resources in mind. A production plan is made for all the
products. Decisions are made based on demand forecasts,
marketing strategies, vertical integration, capacity planning etc.
The time horizon is generally greater than 1 year.
Master Production Schedule (MPS) – this is a detailed
breakup of the APP. This is generated for a period of 12 months. It
specifies the volume of production of different products to be
produced in different periods. They are made after demand
forecasting and form a backbone for more detailed planning.
Materials Requirements Planning (MRP) –
It evaluates the volume of raw material and components to meet
demand and discusses further in detail about the timing of
production. It provides us with a way to manage dependent
demand (demand for raw materials, production requirements). It
ensures that materials are present at the current time and place
for production to occur in the most economical means.
A very important use of MRP is enabling centralization of
purchasing. This is because it states the detailed component
required for each product that can be later grouped and
purchased.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BMAN. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.50. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now