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MATERIAL REQUIREMENT PLANNING (What are the challenges in MRP? Briefly…
MATERIAL REQUIREMENT PLANNING
Explain what is MRP?
Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes
What are the objectives of MRP?
Ensure the availability of materials,
components & products for planned
production and for customer delivery
Maintain the lowest possible level of
inventory
Plan manufacturing activities, delivery schedules,
and purchasing activities
Explain the terms inventory, capacity and priority in MRP
INVENTORY
Order the right part
The right quantity
At the right time
PRIORITY
Keep the due date valid
Order with thee right due date
CAPACITY
Plan for a complete load
An adequate time to view future load
An accurate load
Explain types of MRP system.
Inventory Status Record
It contains up to date status of all items,
hands on scheduled receipts from
suppliers which includes supplier lead
times as well as production cycle time
Master Production Schedule
Gross component requirement
reduced by the available inventory as
indicated in the records.
Bill Of Material (BOM)
Contains information on every
item or assembly required to
produce end items. The
availability of information on each
item such as part number,
description, quantity per
assembly, next higher assembly,
lead time and quantity per end
item must be obtained
What are the challenges in MRP? Briefly explain.
QUANTITY DEMANDED
- :lock: term used in economics to
describe the total amount of goods or services demanded at
any given point in time. It depends on the price of goods or
service in the marketplace. it changes with respect to price is
called the elasticity of demand
QUANTITY SUPPLIED
- :lock: depends on price level, and the
price can be set by either a governing body by using price
ceilings or floors or regular forces.
TIMING OF DEMAND
- :lock: overestimating lead time
demand can lead to inventory shortages
TIMING OF SUPPLY
- :lock: known as Building Integrated
Timing System, is a method for Timing of Supply distributing
a precision clock among telecommunications equipment