Material Requirement Planning Presentation
Material Requirement Planning Presentation
Material Requirement Planning Presentation
Planning (MRP)
What is MRP?
• Computerized Inventory Control
• Production Planning System
• Management Information System
.
• Manufacturing Control System
When to use MRP
• Job Shop Production
• Complex Products
• Assemble-to-Order Environments
• Discrete and Dependent Demand Items
What can MRP do?
• Reduce Inventory Levels • Improve Production
• Reduce Component Schedules
Shortages • Reduce Manufacturing
• Improve Customer Cost
Service • Reduce Lead Times
• Improve Productivity • Less Scrap and Rework
• Simplified and Accurate • Higher Production
Scheduling Quality
What can MRP do?
Material
Requirements
Planning
Clipboard
Level
0
Gross Requirements
Scheduled Receipts
Projected on Hand
Net Requirements
Planned Order Receipts
Planned Order Releases
Terms Defined
• Item – name or number for the item being
scheduled
• Low-Level Code – the lowest level of the item on
the product structure file
• Lot Size – order multiples of quantity
• Lead Time – the time from when an order is
placed to when it is received
• PD – Past Due Time Bucket, orders behind
schedule
Terms Defined
• Gross Requirements – demand for an item by
time period
• Scheduled Receipts – material already ordered
• Projected on Hand – expected ending inventory
• Net Requirements – number of items to be
provided and when
• Planned Order Receipts – net requirements
adjusted for lot size
• Planned Order Releases – planned order receipts
offset for lead times
Product
Clipboard Level 0
Gross Requirements 0 60 0 60 0
Scheduled Receipts
Projected on Hand 20 20 10 10 0 0
Net Requirements 0 40 50
Planned Order Receipts 50 50
Planned Order Releases 50 50