The Material Requirements Planning

The Material Requirements Planning

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                                                            Lot-for-lot techniques      

These are one of the techniques that are used in the planning of the orders. It is also called the discrete order quantity (Jacobs & Chase, 2014). It can generate the planned orders in amounts that are usually equal to the remaining requirements in each of the set periods. The technique is very useful for perishable food items or perhaps the items that have fluctuating demands. The technique has some advantages such as reduction in the extra cost of the hand delivery, and then it helps to replenish orders that are planned as required. However, as the advantages take the day, there is one disadvantage to the use of the technique is that it maximizes the number of orders that are placed and increases the ordering or the set-up costs of the planning orders (Jacobs & Chase, 2014).

The Daily update of the MRP system

The performance of any operation will automatically vary from day to day. When the set period of the observation in which the performance is measured is in a week or so, the daily variations or perhaps the differences are then smoothed; that is to say, the changes in the performance are averaged. For example, when considering a below average performance in one day may sometimes be offset by a higher than average performance result in the following day or even the consequent days. The daily material requirement planning runs, hence monitoring the performance of the items or orders so closely, distinctly thus making the process efficient. The regular updates may even assist to create an excellent report calling normal variations which are considered as abnormal deviations from the expected output of the planning process (Jacobs & Chase, 2014).

Work cited

Jacobs, F. R., & Chase, R. B. (2014). Operations and supply chain management. New York: McGraw-Hill/Irwin.