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Product rates based production

Hi, I'm working on a project wherein the client uses production rates (ex: X number of EAs per month of Y end product = rate of Y) for medium to long term planning.

If for instance, the customer orders are more during a given year than their current throughput they just adjust the machine rates to match the expected outcome/ requirements and vice versa.

I know that rates (hours) per EA can be maintained in a routing but how do we manage medium to long term planning in such businesses where-in projected outcomes (expected throughput) can be adjusted based on rate adjustments.

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  • Posted on Sep 29, 2014 at 11:05 AM


    You can run your medium and long term planning without considering capacity restrictions, that means, without any influence of the production rates. You will only create PIRs for the total quantities and plan the raw material quantities using MRP.

    After you already know the actual production rate, you can run capacity leveling and the order scheduling.



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