Dependent Inventory Model Requirements
Effective use of dependent inventory models requires that the operations manager know the following:
Master production schedule (what is to be made and when)
Specifications or bill of material (materials and parts required to make the product)
Inventory availability (what is in stock)
Purchase orders outstanding (what is on order, also called expected receipts)
Lead times (how long it takes to get various components)
We now discuss each of these requirements in the context of material requirements planning.
Figure 14.1 The Planning Process
Master Production Schedule
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