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    Material Requirement Planning (MRP)

    Uploaded by

    Raiyan
    Material Requirement Planning (MRP) is a computerized system that helps manage inventory and schedule replenishment orders based on a bill of materials, master production schedule, and inventory records. MRP takes production requirements from the master schedule and explodes the bill of materials to determine material requirements by planned order release and receipt. It uses inputs like lot sizing, lead times, and projected inventory levels to generate planned production orders to meet demand.

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    © All Rights Reserved
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    Material Requirement Planning (MRP)

    Uploaded by

    Raiyan
    16 views14 pages
    Material Requirement Planning (MRP) is a computerized system that helps manage inventory and schedule replenishment orders based on a bill of materials, master production schedule, and inventory records. MRP takes production requirements from the master schedule and explodes the bill of materials to determine material requirements by planned order release and receipt. It uses inputs like lot sizing, lead times, and projected inventory levels to generate planned production orders to meet demand.

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    efads

    Original Title

    08. MRP

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    Material Requirement Planning (MRP) is a computerized system that helps manage inventory and schedule replenishment orders based on a bill of materials, master production schedule, and inventory records. MRP takes production requirements from the master schedule and explodes the bill of materials to determine material requirements by planned order release and receipt. It uses inputs like lot sizing, lead times, and projected inventory levels to generate planned production orders to meet demand.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    16 views14 pages

    Material Requirement Planning (MRP)

    Uploaded by

    Raiyan
    Material Requirement Planning (MRP) is a computerized system that helps manage inventory and schedule replenishment orders based on a bill of materials, master production schedule, and inventory records. MRP takes production requirements from the master schedule and explodes the bill of materials to determine material requirements by planned order release and receipt. It uses inputs like lot sizing, lead times, and projected inventory levels to generate planned production orders to meet demand.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 14

    Material Requirement Planning (MRP)

    A computerized information system to aid in


    managing dependant demand inventory and
    scheduling replenishment orders

    Purposes of MRP
    • Inventory – right part, quantity, time
    • Capacity – complete load
    • Priority – due date

    Getting the right material to the right place at the right time
    Material Requirement Planning (MRP)
    Inputs to MRP
    • Bill of material (BOM)
    • Master production schedule (MPS)
    • Inventory record database

    Bill of Material (BOM)

    • all the components of an item

    • usage quantities (for unit parent)


    • the parent-component relationships
    Material Requirement Planning (MRP)
    Bill of Material

    Seat Assy
    Back
    slats

    Seat Seat
    Frame Cushion

    Seat Frame
    Board

    Chair Ladder back Back


    Assy legs Front Leg
    legs supports
    Material Requirement Planning (MRP)
    Bill of Material

    Chair

    Ladder back Front Leg Seat


    1 2 4 1
    subassy legs supports subassy

    Back Back Seat Seat


    1 1
    legs 2 slats 4 Frame Cushion

    Seat Frame Board 4


    Material Requirement Planning (MRP)
    Master Production Schedule (MPS)
    Details of how many end items will be produced
    within specified periods of time

    April May

    Aggregate 670 670


    Week number 1 2 3 4 5 6 7 8
    Ladder-back
    150 150
    Chair

    Kitchen chair 120 120

    Desk chair 200 200 200 200


    Material Requirement Planning (MRP)
    Inventory Record
    A record that shows an item’s lot-size policy,
    lead time and various time-phased data Lot size = 230 unit
    Lead time = 2 wks

    Week No. 1 2 3 4 5 6 7 8
    Gross
    requirements
    150 0 0 120 0 150 120 0

    Scheduled receipt 230

    Projected on-hand
    117 117 117 227 227 77 187 187
    inventory (37)

    Planned receipt 230 230


    Planned order 230 230
    release
    Material Requirement Planning (MRP)
    Inventory Record
    Lot size = 230 unit
    Lead time = 2 wks
    Safety stock = 80 unit

    Week No. 1 2 3 4 5 6 7 8
    Gross
    requirements
    150 0 0 120 0 150 120 0

    Scheduled receipt 230

    Projected on-hand
    117 117 117 227 227 307 187 187
    inventory (37)

    Planned receipt 230 230


    Planned order 230 230
    release
    Material Requirement Planning (MRP)
    Inventory Record
    Lot for Lot
    Lead time = 2 wks

    Week No. 1 2 3 4 5 6 7 8
    Gross
    requirements
    150 0 0 120 0 150 120 0

    Scheduled receipt 230

    Projected on-hand
    117 117 117 0 0 0 0 0
    inventory (37)

    Planned receipt 3 150 120


    Planned order
    3 150 120
    release
    Material Requirement Planning (MRP)

    Customer Order Forecast

    Master Production Schedule


    (MPS)

    Inventory MRP Bill of


    Records Explosion Material

    Material Requirement Planning


    (MRP)
    Material Requirement Planning (MRP)
    Example
    A C

    B D D 2 F

    Week No. 1 2 3 4 5 6
    Gross requirements
    of A
    80

    Gross requirements
    of C
    50
    Material Requirement Planning (MRP)
    For A (LT = 1 wk; lot for lot)
    Week No. 1 2 3 4 5 6
    Gross requirements 80
    Scheduled receipt
    Projected on-hand inventory
    Planned receipt 80
    Planned order release 80

    For C (LT = 1 wk; lot for lot)


    Week No. 1 2 3 4 5 6
    Gross requirements 50
    Scheduled receipt
    Projected on-hand inventory
    Planned receipt 50
    Planned order release 50
    Material Requirement Planning (MRP)
    For D (LT = 2 wks; lot size = 100)

    Week No. 1 2 3 4 5 6
    Gross requirements 80 100

    Scheduled receipt 50
    Projected on-hand
    65 65 85 85 85 85
    inventory (15)

    Planned receipt 100 100

    Planned order release 100 100


    Manufacturing Resource Planning (MRPII)
    Customer Order Forecast

    Master Production Schedule


    (MPS)

    Inventory MRP Bill of


    Records Explosion Material

    Material Requirement Planning (MRP)


    Cost and
    Financial Data

    Manufacturing Resource Planning (MRPII)

    Purchasing Financial Marketing HRM Manufacturing


    Reports Reports Reports Reports Reports
    Enterprise Resource Planning (ERP)

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