MRP

(MATERIAL REQUIREMENTS PLANNING)

Made easy byPallav Bora(106) Shantanu Pathak(107)

Peeyush Rajput(108)
Pooja Shenoy(109) Prateek Saxena(110)

P.O.M. PRESENTATION GROUP 10 (Revision Topic 1)

Material Requirements Planning (MRP)

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Computer-based production planning and inventory control system. Concerned with both production scheduling and inventory control. It is a material control system that attempts to keep adequate inventory levels to assure that required materials are available when needed. MRP is an approach used for dependent demand specially the components of assembled items.

Independent and Dependent Demand

Independent Demand

Dependent Demand

B(4)

C(2)

D(2)

E(1)

D(3)

F(2)

Independent demand is uncertain. Dependent demand is certain.

More on MRP
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MRP systems use four pieces of information to determine what material should be ordered The master production schedule, which describes when each product is scheduled to be manufactured Bill of materials, which lists exactly the parts or materials required to make each product Production cycle times and material needs at each stage of the production cycle time. Supplier lead times.

MRP objective
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The main theme of MRP is getting the right materials to the right place at the right time. 1. Ensure the availability of materials, components, and products for planned production and for customer delivery 2. Maintain the lowest possible level of inventory, Inventory: - Order the right part - Order the right quantity - Order at the right time 3. Plan manufacturing activities, delivery schedules, and purchasing activities

Continued..
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The demand for end items is scheduled over a number of time periods and recorded on a master production schedule (MPS). The product structure records, also known as bill of material records (BOM), contain information on every item or assembly required to produce end items. The inventory status records contain the status of all items in inventory, including on hand inventory and scheduled receipts.

MRP Processing
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Gross requirements

Schedule receipts
Projected on hand

Net requirements
Planned-order receipts Planned-order releases

MRP Processing
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Gross requirements
Total

expected demand

Scheduled receipts
Open

orders scheduled to arrive

Projected on hand
Expected

inventory on hand at the beginning of each time period

MRP Processing
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Net requirements
Actual

amount needed in each time period

Planned-order receipts
Quantity

expected to received at the beginning of the period

Offset

by lead time

Planned-order releases
Planned

amount to order in each time period

Problem background
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80 units of end item E are needed at the beginning of week 6. Three cases (30 units per case) of J have been ordered and one case is scheduled to arrive in week 3, one in week 4, and one in week 5. J must be ordered by the case and B must be ordered in multiples of 120 units. There are 60 units of B and 20 units of J now on hand. Lead times are two weeks each for E and

Questions
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Q.(a) Prepare a MRP for component J. Q. (b) Suppose that in week 4 the quantity of E needed is changed from 80 to 70. The planned ordered releases through week 3 have all been executed. How many more Bs and Js will be on hand in week 6?

Solution

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