Material Requirement Planning

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 4

Material Requirement Planning

MRP14-2
schedule
Master
Inventory

materials
records

Figure
Bill of

Inputs
file

file

MRP Processing
programs reports control
MRP computer
reports
Primary
SecondaryPerformance-

schedules
Planned-order
Order releases

MRP Outputs
transaction
Inventory

Changes
reports

Planning reports
Exception reports

Master schedule: One of three primary inputs in MRP; states which end items are to be
produced, when these are needed, and in what quantities.

Bill of materials: One of the three primary inputs of MRP; a listing of all of the raw materials,
parts, subassemblies, and assemblies needed to produce one unit of a product.
MRP Processing
 Gross requirements
 Schedule requirements
 Projected on hand
 Net requirements
 Planned-order receipts
 Planned-order releases

MRP Outputs
 Planned orders - schedule indicating the amount and timing of future orders.
 Order releases - Authorization for the execution of planned orders.
 Changes - revisions of due dates or order quantities, or cancellations of orders.

Other considerations
 Safety stock.
 Lot sizing.
o Lot-for-lot ordering
o Economic order quantity
o Fixed-period ordering
o Part-period model

Capacity Planning
 Capacity requirements planning: The process of determining short-range capacity
requirements.
 Load reports: Department or work center reports that compare known and expected
future capacity requirements with projected capacity availability

MRP Planning
Develop a tentative Use MRP to
master production simulate
schedule material
Convert material Revise tentative
requirement
requirements
s to master production
resource requirements schedule
CanNo
Is shop No
capacity be
capacity changed to meet
adequate?
Yes Yes
requirements
Firm up a portion Change
of the MPS capacity
Figure

A work order is a supply.


A purchase order is a supply.
14-19

On-hand inventory is a supply.


Demand is the need of an item.
Demand and supply

Supply is a satisfaction of a demand


Finance Master
Market Manufacturing Master
Demand production
production
Marketing schedule
schedule
Production
Production
plan MRP
plan

Customer order is a demand. Forecast order is a demand.


Rough-cut
Rough-cut Capacity
capacity planning
capacityplanning planning
Adjust
Adjust
production plan
productionplan Requirements
Adjust master schedule

Requirements
YesProblems?No No Yes
schedules
Problems? schedules Problems?

You might also like