David Broster Melanie Tjiptoadi Renáta Szászová
Internal Logistics: APIX POLYBOB Company
David Broster Melanie Tjiptoadi Renáta Szászová
CONTENTS
Internal Logistics: APIX POLYBOB Company
David Broster Melanie Tjiptoadi Renáta Szászová
Internal Logistics: APIX POLYBOB Company
TASK 1: 1.
The key issues brought about in the conversation are a lack of understanding of the different departments’ methods of operating, and a lack of acceptance that different departments work in different ways. This is caused by a lack of communication and co-ordination between departments and suggests that MRP has not been properly considered or implemented by APIX POLYBOB. Also, they aim to ensure accuracy of “at least 80%”, which translates as onein-five orders being late, non-existent or otherwise inaccurate.
2. Week Pa rt No . B
C
D
1 Gross Requirements Scheduled Receipts Projected Available Net Requirements Planned Order Receipt Planned Order Release Gross Requirements Scheduled Receipts Projected Available Net Requirements Planned Order Receipt Planned Order Release Gross Requirements Scheduled Receipts Projected Available Net Requirements Planned Order Receipt
2
3
4
50
10
10
10
40
40
40
50
40
60
70
10
9
10
60
10
30
11
50
30
60 20
80
80
80
80
80
80
10 0
10 0
90
14 0
90
12 0 14 0
20
15 0
30
20
50 10 0 15 0
15 0 15 0
30
80 12 0
10 15 0
15 0 18 0
8
50
15 0
18 0
70
7
10
60 15 0
18 0
6
40
80
40
5
80 12 0 20 0
15 0
80
13 0 70 20 0
10 0
50
50 15 0 15 0
15 0 13 0
10 0
18 0 20 20 0
15 0 18 0
30
David Broster Melanie Tjiptoadi Renáta Szászová
E
F
Planned Order Release Gross Requirements Scheduled Receipts Projected Available Net Requirements Planned Order Receipt Planned Order Release Gross Requirements Scheduled Receipts Projected Available Net Requirements Planned Order Receipt Planned Order Release
Internal Logistics: APIX POLYBOB Company 20 0 39 0 40 0
40 0
40 0
10
20 0 39 0
10
40 0 38 0
50
50
50 0
50
17 0 33 0 50 0 50 0
17 0
20 0 39 0
20 38 0 40 0 40 0 38 0
20
29 0 21 0 50 0 50 0
29 0
39 0
30 37 0 40 0 40 0 38 0
30
41 0
41 0
40 36 0 40 0 40 0 38 0
30
39 0
40
50 35 0 40 0 38 0
30
90 50 0 50 0
The Materials Requirements Planning approach solves a lot of Apix Polybob Company’s problems. First of all, everyone is able to see what they order, how much they order, when they order it and when the orders arrive at the company. Moreover the company has an overview of keeping the priorities current. That means, when there is a change coming from the sales department, Jim is able to add and delete, expedite, delay and change orders he has placed. MRP will help Jim to accept the changes the sales department is making. He can calculate the new planned order release and the planned order receipt easily, and other data changes automatically. Another problem the company faces at the moment is that they do not stick to their mission statement, because they are refusing orders and order changes, but with MRP providing good customer service will not be as big a problem anymore. The discussion also mentions that Frank Adams is not satisfied with the level of inventory, the expediting costs, the premium freight costs from the supplier and the poor efficiency. These problems can also be solved by MRP. For example, the level of inventory will not need to be as high anymore, as new orders will be placed when they are needed. Additionally, Apix Polybob Company can stick to their delivery promises as all parts of the product will be finished on time.
15 0 35 0 50 0
David Broster Melanie Tjiptoadi Renáta Szászová
3. •
•
• •
Internal Logistics: APIX POLYBOB Company
There are several conditions associated with MRP. Two in particular which bother us are: Inability to manage the whole operation – it is only an input to production activity control – PAC – and the purchasing functions. Valid if manufacturing capacity is available down the whole supply chain – if demand increases and the MRP system suggests larger or more frequent orders from suppliers, they may not be able to accommodate this extra demand. Additionally, MRP uses data obtained from EOQ calculations, and these have their own limitations or conditions: Assumes fixed order quantities and costs, Assumes constant demand and replenishment all in one go.
David Broster Melanie Tjiptoadi Renáta Szászová 4.
Internal Logistics: APIX POLYBOB Company
Originally: E
Gross Requirements Scheduled Receipts Projected Available Net Requirements Planned Order Receipt Planned Order Release
39 0 40 0
40 0
40 0
10
39 0
10
40 0
20 38 0 40 0 40 0
39 0
39 0
39 0
20
30 37 0 40 0 40 0
39 0
30
40 36 0 40 0 40 0
39 0
40
50 35 0 40 0
Post-discovery: E
Gross Requirements Scheduled Receipts Projected Available Net Requirements Planned Order Receipt Planned Order Release
25 0
25 0
40 0
25 0
26 0 14 0 40 0 40 0
26 0
27 0 13 0 40 0 40 0
39 0 27 0
28 0 12 0 40 0 40 0
39 0 28 0
29 0 11 0 40 0 40 0
39 0 29 0
One problem caused by having only 250 of product E in stock instead of 400 is the need to plan one more order release. This means that the number of orders – and therefore the costs of ordering – are higher. Importantly, the inventory held during the eleven weeks will be much higher than during the old situation, so the carrying cost are also increased. These problems could be addressed by ensuring stock is monitored more accurately in the warehouse and by ensuring stock in the warehouse is more secure and less likely to become obsolete. In this situation MRP would be of little use because it is not a complete stock/warehouse management system, instead it is only one part of the process. 5.
Once again, MRP would be of little use until a more accurate date than “sometime after week 2” is given
30 0 10 0 40 0
David Broster Melanie Tjiptoadi Renáta Szászová 6.
No!
Internal Logistics: APIX POLYBOB Company
David Broster Melanie Tjiptoadi Renáta Szászová
TASK 2 1.
Internal Logistics: APIX POLYBOB Company
