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The Market-Driven Supply Chain by Lora Cecere, Robert P. Burrows III, Gregory P. Hackett

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CHAPTER 6

Designing a Rate-Based Planning Process

Rate-based planning (rbp) is a significant departure from conventional S&OP and the conventional scheduling practices of MRP (material requirements planning), as imbedded in all ERP (enterprise resource planning) systems. Using RBP can have a transformational impact on your business, increasing cash flow and delighting your customers with excellent service.

MRP, JIT, and the so-called pull systems that ERP has added all start the production process when a new order comes in and trips a replenishment signal, either a safety-stock level or a Kanban trigger. This trigger is not limited to any capacity consideration, nor is it sensitive to order trends; it just starts new production even when the ...

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