Material Requirement Planning
Material Requirement Planning
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
Requirements
YesProblems?No No Yes
schedules
Problems? schedules Problems?