Material Requirements Planning at Sports Kits
Synopsis
Sports Kits Pvt. Ltd. (Sports Kits), founded in 2010, involved in manufacturing of all types of sports kits. Despite its popularity and having tie-ups with many corporates, the demand for the company’s sports kits was irregular. For some weeks there was no demand at all, while for some weeks there would be an enormous demand. Hence, the company decided to plan the production for every quarter from October 2014. Now, the Production Manager at the company wanted to develop a materials requirements plan for manufacturing sports kits for a specified period.
Prerequisite Conceptual Understanding
- • Jay Heizer, et al., “Chapter 13: Material Requirements Planning (MRP) and ERP”, Operations Management, 9th Edition, Pearson Education, 2008
Expected Learning Outcomes
- • Concept and benefits of Material Requirements Planning (MRP)
- • The MRP procedure and its Components
Assignment Questions
- I. What do you mean by material requirements planning?
- II. Prepare a MRP for Sports Kits’ skateboards (A).
Teaching Plan
A detailed Teaching Plan is presented [Annexure (TN)-I] at the end of the Teaching Note.
Case Analysis
The discussion was initiated by posing a question to the class: What do you mean by MRP?......................
Exhibits
Exhibit (TN)-I: MRP System and its Components
Exhibit (TN)-II: Demand for Sports Kits
Exhibit (TN)-III: Computation of Order Quantity for Week 5
Exhibit (TN)-IV: Computation of Order Quantity
Exhibit (TN)-V: Product Structure/Bill of Materials for Sports Kits
Exhibit (TN)-VI: Out-going Inventory
Exhibit (TN)-VII: Production Plan
Exhibit (TN)-VIII: Final MRP
Exhibit (TN)-IX: Planned Order Release