EXAM 4 NOTES – WK 7 M 3-11 WK 8 ALL MOD

WEEK 7 – MODULE 3: MRP – EOQ (Economic Order Quantity) LOT SIZING

Master Production Schedule (MPS)

- Previous MRP used the simplest lot-sizing scheme, which is Lot-For-Lot. But since it is rarely optimal, we will consider
lot sizing to plan for the “Planned order release” (Last row of MRP).

Old MRP (Lot-for-lot):

New MRP (EOQ Lot ordering):

- For the next level (valves), multiply the “Planned order release” by 3

- One of the most common mistake is to use the wrong “Planned order release” for the “Gross requirement” on
the next level, making the rest of the problem completely wrong.

WEEK 7 – MODULE 4: MRP – SILVER METAL HEURISTIC (S-M) (Another Lot Sizing Scheme)

Heuristic – a mathematical method that doesn’t have guarantee of optimality.

- Lot sizing is based on the cost per period as a function of the # of periods the current lot is to span.

- When doing lot sizing, we are trying to make the decision of production quantity and match the demand for
following weeks.
WEEK 7 – MODULE 5: MRP – LEAST UNIT COST (LUC)
- Silver Meal Heuristic performed better than Least Unit Cost.

WEEK 7 – MODULE 6: MRP – PART PERIOD BALANCING (PPB)

- All the past discussed optimality methods (Lot-For-Lot, EOC Lot Ordering, Silver Meal, and Least Unit Cost) are all
heuristics, meaning they do not guarantee optimality.

- The solution yPPB is different than that from the other heuristic methods.

- Can do a cost comparison to determine which method has the least total cost.
WEEK 7 – MODULE 7: MRP – LOT SIZING WITH EXPLOSION CALCULUS

- For the “Gross Requirement” row on MRP table for item (A), that of which 2 are required for the end item, multiply the
“Net Requirement” of the Master Production Schedule for the End Item by 2!

- When doing LFL, the “planned order release” will equal the “time phased net req.”

- When doing EOQ Lot Sizing, “planned order release” will contain either 0 or Q* in the table.

- All other heuristic methods give varying quantities.

WEEK 7 – MODULE 8: MRP – OPTIMAL LOT SIZING I
WEEK 7 – MODULE 9: MRP – OPTIMAL LOT SIZING II

- The principle of optimality tells you that the minimum cost-to-go does NOT depend on what happened in the past.

- In dynamic programming, the shortest path can be found if you go backwards, or if you start from another
arbitrary point.
WEEK 7 – MODULE 10: MRP – LOT SIZING WITH CAPACITY CONSTRAINT I (FEASIBILITY)

- The Feasibility condition equation tells us to ensure the cumulative sum from i=1 to j for the capacity constraint must be
greater than or equal to the cumulative sum from i=1 to j of the requirement constraint.
WEEK 7 – MODULE 11: MRP – LOT SIZING WITH CAPACITY CONSTRAINT II (IMPROVEMENT)

- First improvement, try to schedule production to where you can save money spent on setup costs such that the
inventory holding costs are not more.
WEEK 8 – MODULE 1: SCHEDULING – INTRO TO OPERATIONS SCHEDULING
- Scheduling spans to multiple disciplines.
- We will focus on Job-Shop Scheduling: Scheduling the set of activities, or resources, in a shop floor to convert inputs
(i/P) into outputs (o/P)

- Objectives of Scheduling:
- Minimize cost
- Maximize Efficiency:
- Maximize utilization (minimize idle time)
- Minimize Work-In-Progress (WIP)
- Customer Satisfaction:
- Meet deadlines
- Minimize average flow time
- Usually these objective are CONFLICTING!
WEEK 8 – MODULE 2: SCHEDULING – SEQUENCING RULES
Sequencing Rules for a Single Machine:
- n jobs to be processed on 1 machine

KPI: Key Performance Measures

EXAMPLE:
- The “Completion Time (Flow Time)” is the cumulative sum of the “Processing Time”

Critical Ratio:
- Numerator represents the time remaining before the due date
- Want a CR > 1
- Should schedule the job with the lowest CR
- The current time for each step equals the previous current time plus the processing time of that job.
- When having two or more negative CRs, schedule them according to a Shortest Processing Time (SPT) rule.

- Mean Flow Time (MFT): Completion time = Flow time

WEEK 8 – MODULE 3: SCHEDULING – SEQUENCING THEORY

- The number of sequences can blow up to a huge number, that’s why sequencing is important.

WEEK 8 – MODULE 4: SCHEDULING – MOORE’S ALGORITHM

Example:

WEEK 8 – MODULE 5: SCHEDULING – GANTT CHARTS (Sequencing on MULTIPLE machines)

Make Span: the time at which your LAST job is finished.
Idle time: Hatched shaded areas only until all jobs are finished.
Flow time: The time at which your job is finished

Permutation Schedule: Schedule where both machines complete their jobs in the same order.

WEEK 8 – MODULE 6: SCHEDULING – JOHNSON’S RULE (Sequencing n jobs on TWO machines)

- Johnson’s method ONLY works as on a Permutation Schedule.
- There are no better performance metrics to go by than this (provided we are able to use Johnson’s method)

Example:
WEEK 8 – MODULE 7: SCHEDULING – ASSEMBLY LINE BALANCING (Flow Shop Problem)

Assembly Line Balancing: Which machines go to which stations?

- Assign tasks to a workstation such that the sum of their times are LESS than the given lead time (C)

6 workstations!
When C=16:

5 workstations!