Ch 14 MRP Lecture Notes 2009

Ch 14 MRP Lecture Notes 2009 - Chapter 14 Material...

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Unformatted text preview: Chapter 14 Material Requirements Planning 1. MRP What is Material Requirements Planning (MRP)? - A computer based information system to handle ordering and scheduling of dependent demand items I ndependent and Dependent Demand Independent Demand (end item) B(4) C(2) D(2) E(1) D(3) F(2) Dependent Demand (component parts) Independent demand is uncertain. Dependent demand is certain. A Dependent items are needed just prior to when they are needed for production Demand is lumpy Little or no safety stock MRP converts the production plan for final products into requirements for component items and raw materials: What is needed How much is needed When is needed When should procurement, fabrication, assembly start for completing end items on time 1 Over view of MRP 2. MRP Inputs a). Master Schedule : states which end items are to be produced, when these are needed, and in what quantities. The planning horizon is divided into time periods called time-buckets (typically weeks) From customer orders, forecast, warehouse orders to buildup seasonal inventories b). Bill-of-Materials (BOM) File : List of all raw materials, parts, subassemblies needed to produce one unit of the product. Illustrated using a product-structure tree: 2 c). Inventory Records File : Info on the inventory status of each item by time period. o Requirements o Scheduled receipts o Projected on-hand inventory levels o Lead-time information o Other details (supplier, lot size etc) o Transactions are recorded and updates done every time period...
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Ch 14 MRP Lecture Notes 2009 - Chapter 14 Material...

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