An Integrated Planning Mechanism for Supply Chain Management with Routing Subproblem

By applying the concept of distribution BOM (D-BOM, for short) , we show that whole supply chain planning with MRP can be implemented in a commercially available enterprise resource planning package, SAP R/3. We will investigate the applicability of D-BOM to R/3 by actually implementing D-BOM and related routings with work centers to model supply chain process. It will be turned out that D-BOM with routings is a suitable basis for integrated planning mechanism of supply chain as a whole, and that what function is necessary to enhance MRP to supply chain planning.