Material Requirements Planning
Material Requirements Planning
Material Requirements Planning
END ITEMS
MRP
DETAILED SCHEDULE FOR
RAW MATERIALS Dependent demand lumpy & COMPONENTS
Inv. LEVEL
t1 t2
t3 t4 t5
TIME
t6
Place order
Item delivered
C1
C2
C3
Cn
PRODUCTS
P1
P2
P3
PN
Customer orders
Sales forecasts
Engg. changes
Inventory transactions
MRP PROCESSOR
OUT PUT REPORTS Gross & Net requirements report Capacity vs Load report Shop floor Planning report Production Order Status & exceptions report
8 50
10 100
70
80
25
DEMAND
Often excluded from MPS, since it does not include end product demand.
Firms customer orders Forecasted demand Demand for individual component Parts (for repair and service)
Level 0 (product)
P1 S1 C1
(1) (1)
Level 1 (sub-assemblies)
S2 C3 C4
(1) (2)
(2)
C2
(4)
C5
(2)
C6
(1)
P2 S4(1)
C4 C6 C7 C2 C8 C1 C2 C3 C4 C5 C6 (2) (1) (1) (4) (1) (2) (2) (1) (1) (4) (2) M4 PRODUCT STRUCTURE FOR PRODUCTS P1 & P2
Initial inventory status for M4
PERIOD ITEM RAW MATERIAL M4 GROSS REQUIREMENTS SCHEDULED RECEIPTS ON HAND NET REQUIREMENTS PLANNED ORDER RELEASES 50 40 90 1 2 3 4 5 6
EVOLUTION OF MRP
Improved computational efficiency of computers
Unrealistic M/c schedules, ignoring plant capacities Not only plans priorities but provides feedback to executing the priority plan
(Links functions -Capacity planning -Inventory management -Shop floor control -MRP)
Links up the closed loop MRP system with the financial systems of the company