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    Material Requirements Planning: - Dependent Inventory Model. - For In-House Inventory Planning

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    sumon1314
    Material Requirements Planning (MRP) is a dependent inventory model used for in-house inventory planning. MRP requires a master production schedule, bill of materials, inventory availability, outstanding purchase orders, and component lead times. The bill of materials provides the product structure and lists the quantities of components needed to make finished products. MRP calculates gross material requirements over time based on demand, and accounts for on-hand inventory and scheduled receipts to determine net requirements and planned order releases.

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    Material Requirements Planning: - Dependent Inventory Model. - For In-House Inventory Planning

    Uploaded by

    sumon1314
    30 views22 pages
    Material Requirements Planning (MRP) is a dependent inventory model used for in-house inventory planning. MRP requires a master production schedule, bill of materials, inventory availability, outstanding purchase orders, and component lead times. The bill of materials provides the product structure and lists the quantities of components needed to make finished products. MRP calculates gross material requirements over time based on demand, and accounts for on-hand inventory and scheduled receipts to determine net requirements and planned order releases.

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    Material Requirements Planning (MRP) is a dependent inventory model used for in-house inventory planning. MRP requires a master production schedule, bill of materials, inventory availability, outstanding purchase orders, and component lead times. The bill of materials provides the product structure and lists the quantities of components needed to make finished products. MRP calculates gross material requirements over time based on demand, and accounts for on-hand inventory and scheduled receipts to determine net requirements and planned order releases.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    30 views22 pages

    Material Requirements Planning: - Dependent Inventory Model. - For In-House Inventory Planning

    Uploaded by

    sumon1314
    Material Requirements Planning (MRP) is a dependent inventory model used for in-house inventory planning. MRP requires a master production schedule, bill of materials, inventory availability, outstanding purchase orders, and component lead times. The bill of materials provides the product structure and lists the quantities of components needed to make finished products. MRP calculates gross material requirements over time based on demand, and accounts for on-hand inventory and scheduled receipts to determine net requirements and planned order releases.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 22

    Material Requirements Planning

    • Dependent Inventory Model.


    • For in-house inventory planning.
    Requirements of MRP
    • Master production schedule (what to made,
    when)
    • Specifications, or Bill of Material (how to
    make the product)
    • Inventory availability
    • Purchase orders outstanding (what is on
    order)
    • Lead times (how long it takes to get various
    components)
    Master Production Schedule
    • Tells us what is required to satisfy demand
    and meet the production plan.
    • Statement of what is to be produced, NOT a
    forecast of demand.
    Gross requirements per day
    4 5 6 7 8
    100 150 100 180
    Specifications, or Bill of Material
    • A list of quantities of components,
    ingredients, or materials to make a final
    product.
    • Provides the product structure.
    EX: A “Blast ‘em, dude” audio kit (A) is made of 2 small
    tweeter boxes (B) and 3 large woofer boxes (C). Each
    tweeter is made of two speakers (D) and two shipping
    boxes (E). Each woofer consists of two boosters (F) and
    two shipping boxes (E). Each booster is made of a circuit
    board (G) and a speaker (D).
    EX: A “Blast ‘em, dude” audio kit (A) is made of 2 small
    tweeter boxes (B) and 3 large woofer boxes (C). Each
    tweeter is made of two speakers (D) and two shipping
    boxes (E). Each woofer consists of two boosters (F) and
    two shipping boxes (E). Each booster is made of a circuit
    board (G) and a speaker (D).

    2B 3C
    EX: A “Blast ‘em, dude” audio kit (A) is made of 2 small
    tweeter boxes (B) and 3 large woofer boxes (C). Each
    tweeter is made of two speakers (D) and two shipping
    boxes (E). Each woofer consists of two boosters (F) and
    two shipping boxes (E). Each booster is made of a circuit
    board (G) and a speaker (D).

    2B 3C

    2D 2E
    EX: A “Blast ‘em, dude” audio kit (A) is made of 2 small
    tweeter boxes (B) and 3 large woofer boxes (C). Each
    tweeter is made of two speakers (D) and two shipping
    boxes (E). Each woofer consists of two boosters (F) and
    two shipping boxes (E). Each booster is made of a circuit
    board (G) and a speaker (D).

    2B 3C

    2D 2E 2F 2E
    EX: A “Blast ‘em, dude” audio kit (A) is made of 2 small
    tweeter boxes (B) and 3 large woofer boxes (C). Each
    tweeter is made of two speakers (D) and two shipping
    boxes (E). Each woofer consists of two boosters (F) and
    two shipping boxes (E). Each booster is made of one
    circuit board (G) and one speaker (D).

    2B 3C

    2D 2E 2F 2E

    G D
    EX: A “Blast ‘em, dude” audio kit (A) is made of 2 small
    tweeter boxes (B) and 3 large woofer boxes (C). Each
    tweeter is made of two speakers (D) and two shipping
    boxes (E). Each woofer consists of two boosters (F) and
    two shipping boxes (E). Each booster is made of one circuit
    board (G) and one speaker (D). Note that the numbers
    here are only relevant
    A to the level above them!
    2B 3C

    2D 2E 2F 2E

    G D
    Called an “exploded” product structure.

    Items above a level are PARENTS;


    items below a level are COMPONENTS or CHILDREN.

    2B 3C

    2D 2E 2F 2E

    G D
    4 levels here.

    Level 0 A

    level 1 2B 3C

    level 2 2D 2E 2F 2E

    level 3 G D
    Low-level coding
    • Necessary for identical items existing at
    diff. levels in the BOM.
    • An item is coded at the lowest level at
    which it is used.
    Level 0 A

    level 1 2B 3C

    level 2 2D 2E 2F 2E

    level 3 G D
    Low-level coding
    • Useful in calculating quantities of
    components needed.

    Level 0 A

    level 1 2B 3C

    level 2 2E 2F 2E

    level 3 2D G D
    Lead times
    • Time required to acquire (purchase, produce,
    or assemble) an item.
    • Manufactured part: lead time made of move,
    setup, and assembly or run times for each
    component.
    • Purchased part: lead time made of difference
    between when part is ordered and when it is
    received.
    Time-phased product structure. Lead times
    Rotate BOM below and reflect lead A 1 wk.
    times with time as the X axis. B 2
    C 1
    D 1
    E 2
    A F 3
    G 2
    2B 3C

    2E 2F 2E

    2D G D
    Time-phased product structure.
    Rotate BOM below
    and reflect lead 8 7 6 5 4 3 2 1 0
    times with time as
    2D
    the X axis.
    2B
    Lead times
    A 1 wk. 2E
    B 2 G A
    C 1
    2F
    D 1
    E 2 D 3C
    F 3
    G 2 2E
    Gross Material Requirements
    Assume we need 50 “Blast ‘em, dude” speaker kits in
    eight weeks.

    We need to calculate when and how many of each


    component we need to start making.

    (go to Excel).
    Lot sizing
    • lot-for-lot (L4L): order exactly the amount
    you want.
    • Lot req. sized: order in certain amounts
    (ex. a dozen eggs).
    Scheduled Receipts
    • Units (of any component) that you have
    already scheduled to come in at a particular
    time.
    On-Hand Inventory
    • Units (of any component) that you already
    have in stock (at the beginning).
    Gross Req. vs. Net Req.
    • Gross required is the total amount of a
    component you need.
    • Net required is (Gross)
    • - (On-hand inventory)
    • - (Scheduled receipts)
    Planned Order Receipts
    • What you PLAN to RECEIVE what you
    ORDERED.

    Planned Order Releases


    • What you PLAN to RELEASE in an
    ORDER.

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