Final Summary

Riordan Proposal Summary

Eugene Guerrero, Somayra Hipps, John Overturf, Janay Wilson

OPS/571

Tim Moon

The material requirements planning (MRP) schedule for Riordan’s China plant utilizes an infinite, backward scheduling system for its production of electrical parts. According to Chase, Jacobs, and Aquilano (2005), “backward scheduling starts from some date in the future (possibly a due date) and schedules the required operations in reverse sequence” (p. 665). The backward schedule tells when an order must be started in order to be done by a specific date. For Riordan, the number of parts, components, and materials needed for each production run of electrical fans is determined by the due dates established for each batch order. The China plant operates with an assemble-to-stock schedule, which considers the average sales over the last three years for its production schedule. This allows the plant to determine and allocate orders of its outsourced materials, the electric motors and plastic polymers.

The data presented above is Riordan’s MRP schedule which provides information in regard to how much of each item is needed (order placement) and when it is needed (required date) to complete production of 100 units by week ten.

These figures are computed, as shown in the MRP calculations based on the lead times for each item, also as referenced in the Product Structure Tree for Electrical Fans.

The electrical fan is composed of the following dependent items: plastic fan blades (Part B), plastic fan housing (Part C), and electric fan motor (Part D). The demand for these dependent items is determined by the demand for the higher-level item (electrical fans). The forecast demand schedule, which is used for backward scheduling of production, follows data derived from the plant’s make-to-stock...