Scribd Logo
Upload

Welcome to Scribd!

  • 15 views

    Material Requirements Planning (Chapter 12)

    Uploaded by

    banmali
    Material requirements planning (MRP) is a process that determines the quantity and timing of materials needed to meet production plans. It uses a bill of materials that lists all components required to produce a product, along with their quantities. MRP creates and maintains inventory records for each item by time period, showing gross requirements, scheduled receipts, projected inventory levels, and net requirements. It then generates planned order releases based on net requirements and lead times, using lot sizing rules like lot-for-lot or economic order quantity to determine order quantities.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Material Requirements Planning (Chapter 12)

    Uploaded by

    banmali
    15 views10 pages
    Material requirements planning (MRP) is a process that determines the quantity and timing of materials needed to meet production plans. It uses a bill of materials that lists all components required to produce a product, along with their quantities. MRP creates and maintains inventory records for each item by time period, showing gross requirements, scheduled receipts, projected inventory levels, and net requirements. It then generates planned order releases based on net requirements and lead times, using lot sizing rules like lot-for-lot or economic order quantity to determine order quantities.

    Original Title

    MRP_15_03_2022

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Material requirements planning (MRP) is a process that determines the quantity and timing of materials needed to meet production plans. It uses a bill of materials that lists all components required to produce a product, along with their quantities. MRP creates and maintains inventory records for each item by time period, showing gross requirements, scheduled receipts, projected inventory levels, and net requirements. It then generates planned order releases based on net requirements and lead times, using lot sizing rules like lot-for-lot or economic order quantity to determine order quantities.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    15 views10 pages

    Material Requirements Planning (Chapter 12)

    Uploaded by

    banmali
    Material requirements planning (MRP) is a process that determines the quantity and timing of materials needed to meet production plans. It uses a bill of materials that lists all components required to produce a product, along with their quantities. MRP creates and maintains inventory records for each item by time period, showing gross requirements, scheduled receipts, projected inventory levels, and net requirements. It then generates planned order releases based on net requirements and lead times, using lot sizing rules like lot-for-lot or economic order quantity to determine order quantities.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 10

    Material Requirements Planning

    (Chapter 12)

    Alok Raj
    PODS Area
    Office: Room No 14, 2nd Floor, Library Building, Tel. 3439
    Email: [email protected]
    Material Requirements Planning
    Forecastin
    g

    Workforce
    Supply Chain support

    Aggregate
    Planning

    Master
    production
    Inventory on hand
    External Capacity

    Scheduling
    Material Requirements Planning

    Month 1 2
    Aggregate Production Plan
    Car Production 1000 1050

    Week 1 2 3 4 5 8 6 7
    Model X 200  
    100    
    200 100 100  Master Production Plan
    Model Y   200 300 200 100 200   
    Model Z 50   50 100       150
    Introduction
     Material requirements planning (MRP): The logic for
    determining the number of parts, components, and
    materials needed to produce a product.
     It is for dependent demand.
     Dependent demand
     Independent demand

     MRP ismore applicable in case of batch production or


    assembly operations.
    Bill of Materials (BOM)
    List of components, ingredients, and materials
    needed to make product
    Provides product structure
     Items above given level are called parents
     Items below given level are called children
    Product Structure Tree

    Level Bill of Quantity


    materials
    0 Chair 1
    1 Leg assembly 1
    2 Legs 2
    2 Cross bar 1
    1 Seat 1
    1 Back assembly 1
    2 Side rails 2
    2 Cross bar 1
    2 Back supports 3
    Inventory records
     Includes information on the status of each item by time period,
    called time buckets
     Information about
     Gross requirements
     Scheduled receipts
     Expected amount on hand
     Other details for each item such as
     Supplier
     Lead time
     Lot size policy
     Changes due to stock receipts and withdrawals
     Canceled orders and similar events
    MRP Record
    Week Number 1 2 3 4 5 6 Gross requirements(Gt)
    • Total amount required for a particular item
    Gross Scheduled receipts(St)
    • Orders that have already been released and that
    Requirements
    are scheduled to arrive as of the beginning of the
    period
    Scheduled Projected Available balance(Pt)
    Receipts • Amount of inventory expected as of the end of a
    period.
    Projected on Net requirements
    Available balance • The amount needed when the projected available
    balance plus the scheduled receipts in a period
    Net requirements are not sufficient to cover gross requirement
    Planned-order receipts(Pot)
    • The amount of an order that is required to meet a
    Planned-order-
    net requirement in the period
    receipt Planned-order releases
    • The planned order receipt offset by the lead time
    Planned-order
    release
    Lot Sizing Rules

     Lot-for-Lot (L4L) ordering

     Economic Order Quantity (EOQ)

     Periodic Order Quantity (POQ)


    Example 1

    LT = 3 0 1 2 3 4 5 6 7 8

    Gross Requirements 125 325 275 200 300 175 350 250

    Scheduled Receipts 450 425 250 175 350 250

    Projected Inventory 100 425 100 250 50

    Net Requirements 250 175 350 250

    Planned Order Release 250 175 350 250

    Lot-for-Lot (L4L) ordering

    You might also like