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UpstreamSupplyChainInventoryManagementFromDRPtoMRP,TraditionalInventoryManagement,SupplyChainInventoryIntegration,WhatifIUseTraditionalTechniques?,Insuchaninventorysystemswithdecentralizedcontrol,lotsize/reorderpointlogicwill:CreateandamplifylumpydemandLeadtothemal-distributionofavailablestock,hoardingofstock,andunnecessarystockoutsForcerelianceonlargesafetystocks,expediting,andre-distribution.,Impactofbullwhipeffect,CDCDemandPattern,RDCOrderingPatterns,RDCInventoryCycles,LayersofInventoryCreateLumpyDemand,Asweknow,localoptimizationalwaysresultinun-globaloptimization.Weneed“SupplyChainInventoryIntegration”,MRP/DRPIntegration,PurchaseOrders,MRP,MPS,DRP,Product,CDC,RDC,Retail,Retail,Retail,Retail,Sales/MarketingPlan,DistributionRequirementsPlanning(DRP)-review,AnticipatesdownstreamsupplychaininventorycontrolAlwaysforindependentdemand.DistributiondecisionfromVMImethod.,DRPRequirements,InformationRequirements:BaseLevelUsageForecastsDistributionNetworkDesignInventoryStatusOrderingDataDRPProcess:RequirementsImplosionNetfromGrossRequirementsRequirementsTimePhasingPlannedOrderRelease,SupposeweforecastdemandforWholesalerAforthenext8days(thebesttimehorizontousewilldependonmanyfactors)Basedonthis,weanticipatethatWholesalerAwillorderonDay3,DRPExampleI,WeextendtheanalysistoincludeWholesalerBCombined,weexpecttoseeordersonDays3and4,DRPExampleII,Thedistributorthenusesthisinformationtoplanitsownorders.Inthiscase,supposeittakestwodaysforthesuppliertoreplenish;basedontheinformation,thedistributorwouldorderonDay1,DRPExampleIII,ADistributionNetwork,Plant,CentraWarehouse,RegionalWarehouse2,RegionalWarehouse1,RegionalWarehouse3,RetailerARetailerBRetailerC,RetailerDRetailerERetailerE,RetailerGRetailerHRetailerI,MITCenterforTransportationwhenweneedanewMPSorder.,55,MRPInputs-InventoryRecords,SystemcheckstheinventoryrecordforeachBOMitemtoseeifinventoryisavailableorifareplenishmentorderisneededtobuildthecabinets.,56,MRPInputs-BillsofMaterial,ABOMlistsalloftheitemsneededtoproduceoneCDcabinetTheBOMisexactlylikearecipeforbakingacakeTheBOMsmustbecompleteandaccurateandcanonlybechangedbyanECNMRPBOMsareindentedbillsofmaterials,IndentedBOM,57,AProductStructureTree,58,TheMRPExplosionProcess,Usingthistableandtheproductstructuretree,wewillworkthroughanexampleofhowtheMRPexplosionprocesscalculatestherequirementsforbuildingaCDcabinet.NextwestartwiththecabinettoptoshowhowMRPcalculatesthegrossrequirementsforthiscomponent.,59,InventoryRecords-Components,Itwasnotedonthepreviousslidethattheparentitem(CDCabinet)hasplannedordersinperiods3,6,and9.Itschildren(top,bottom,door,left&rightside,shelves,andsupports)havegrossrequirementsinperiods3,6,and9.,Wiley2010,60,InventoryRecords-Components,Wiley2010,61,InventoryRecordsComponentscont,62,InventoryRecordsComponentscont,63,InventoryRecordsRemainingComponents,64,Inv.RecordsRemainingComponentscont,65,Inv.RecordsRemainingComponentscont,SupplyChainInventoryIntegration,SupplyChainInventoryIntegration,Suppl

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