Operations Management: An Integrated Approach, 5th Edition

ACTION NOTICES

MRP systems typically provide inventory planners with action notices, which indicate the items that need the planner's attention. An action notice is created when a planned order needs to be released, when due dates of orders need to be adjusted, or when there is insufficient lead time for a planned replenishment order. Let's look at the different kinds of action notices.

Action notices

Output from an MRP system that identifies the need for an action to be taken.

A positive quantity in the current period's planned order row means that an order must be released. We call the current period the action bucket because that is the period in which we take actions such as releasing, rescheduling, or canceling orders.

Action bucket

The current time period.

Production and inventory control planners release orders to either an external supplier or to the shop floor. An order released to a supplier authorizes the shipment of the material so that it arrives as needed. An order released to the shop authorizes withdrawal of the needed materials and the start of production. Action notices are generated only for actions taken in the current period. Production and inventory control planners adjust the due dates of orders (both opened and planned) to make sure the material does not arrive ...