Operations Management Case Study

Material Requirements at King Furniture

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Abstract:
The King Furniture Pvt. Ltd (King Furniture), founded in 1982, is part of a family enterprise with a combined manufacturing strength across several products that gives it the vital component strength in furniture manufacture. King Furniture’s facilities include state-of-the-art plants for manufacturing powder coated and electroplated metal parts and injection moulded items. Injection mould unit manufactures Chair seats and its inners and outers of chair back and other chair components. Thermoforming unit for chair seat and back covers, melamine laminates. It serves all over India and popular for its quality, innovative & aesthetic designs and prompt delivery. Although it has tie-ups with many corporate customers. the demand for the company’s chairs is not regular. For some weeks there will not be any demand at all, while for some weeks there will be a huge order. Hence, after onwards the company decided to plan the production for every quarter. Now, the production manager at the company wanted to develop a materials requirements plan for producing chairs for a specified period. Materials Requirements Planning (MRP) is a technique which assists a company in the detailed planning of its production. MRP calculates and maintains an optimum manufacturing plan based on master production schedules, sales forecasts, inventory status, open orders and bills of material. If properly implemented, it will reduce cash flow and increase profitability. MRP will help to be proactive rather than reactive in the management of your inventory levels and material flow.

Pedagogical Objectives:

• To discuss and analyse the MRP.

Keywords : Material Requirement Planning, Master Production Schedule, Inventory Control, Bill of Materials, Planned Orders, Order release, Order reschedule, Course Case Mapping

Contents:

• Introduction
• Suggested Questions for Discussion