Question

1. Material requirements planning was developed for manufacturing. how might this system put to work for a service organization?
2. newer smaller businesses are more often observed chasing demand than leveling production. why would these businesses prefer that particular strategy?
3. what is an achilles' heel and why would a certain assumption about lead times be considered the achille's heel or MRP?

Answer 1

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1. Material requirements planning was developed for manufacturing. how might this system put to work for a service organization?

Planning of material needs for development was established. The MRP program has been developed to provide a service organization with the necessary resources for the service organization and the implementation of the MRP to create demand for the material resources provided for the service organization. The service company is smaller than the manufacturing company, but we can quantify the demand based on the forecasting method. The projected demand can then be placed in the MRP and the MRP can operate and determine the required material and resources for the service company.
2. newer smaller businesses are more often observed chasing demand than leveling production. why would these businesses prefer that particular strategy?

More often than balancing out production, smaller companies are found to increase demand. These companies prefer this strategy because they're new to the company and want to optimize their performance by meeting demand by 100%. Therefore, they follow the strategy instead of the leveling strategy. They are under high pressure and can not accept the delivery failure, which is why they pursue demand.

3. what is an achilles' heel and why would a certain assumption about lead times be considered the achille's heel or MRP?

An Achilles Heel' is the features or consistency contributing to a business / process demise. The MRP Achille Heel is called a certain expectation of lead times, as this is the characteristic that renders it less important for the MRP. When we decide how long equipment is to be procured, the package will affect the MRP performance, the cost required for each item and materials will be calculated by MRP, and the time taken to get the component into use at the factory.

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