MRP
MRP
MRP
Planning
Materials Requirements
Planning
Material Requirements
Planning
Materials
Objective of MRP
To
MPS
(Specific End Items)
10
Firm orders
from known
customers
Aggregate
product
plan
Forecasts
of demand
from estimates
Engineering
design
changes
Master
production
schedule
(MPS)
Inventory
transactions
Bill of
material
file
Material
planning
(MRP)
Inventory
record
file
Reports
Materials
Parts
Components
Production sequence
Modular BOM
Coding
If
identical items
exist at various
levels in the BOM:
is coded at
lowest level at which
it occurs
D (Level 2 or Level
3)
This number
identifies the part at
the lowest level of
usage.
Item
time.
Order release notices to execute the
planned orders.
Changes in due dates of open orders due to
rescheduling.
Cancellations or suspensions of open
orders due to cancellation or suspension of
orders on the master production schedule.
Inventory status data.
MRP Examples
A
B(4)
D(2)
C(2)
E(1)
D(3)
F(2)
Lead Times
A
1 day
B
2 days
C
1 day
D
3 days
E
4 days
F
1 day
Demand
Day 10 50 A
Day 8
20 B (Spares)
Day 6
15 D (Spares)
Day:
A Required
Order Placement
9
50
LT = 1 day
10
50
LT = 2
A
B(4)
D(2)
4x50=200
C(2)
E(1)
D(3)
Spares
F(2)
A
Part D: Day 6
B(4)
D(2)
40 + 15 spares
C(2)
E(1)
D(3)
F(2)
22
MRP Example
You
No
Feedback
Realistic?
Yes
Execute:
Capacity Plans
Material Plans
Feedback
(L4L)
Economic order quantity (EOQ)
Least total cost (LTC)
Least unit cost (LUC)
Part Period Balancing-changing lot
sizes to reflect requirements in the
future (how many periods should be
combined to reduce cost)