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MATERIAL REQUIREMENT PLANNING (OBJECTIVES OF MRP (Maintain the lowest…
MATERIAL REQUIREMENT
PLANNING
MATERIAL REQUIREMENT PLANNING is a production planning, scheduling, and inventory control system used to manage manufacturing processes.
OBJECTIVES OF MRP
Maintain the lowest possible level of inventory
Plan activities such as manufacturing, delivery and purchasing
Ensure the availability of materials, components and products for planned production and for customer delivery
Priorities
Order with the right due date
Keep the due date valid
Capacities
Plan for a complete load
An Adequate load
An adequate time
Inventory
The right quantity
At the right time
Order the right part
MRP SYSTEM
Master production schedule determine from the material requirement plannin
Balance of material (BOM) consists of information on every item to be produced
Inventory status record contain up to date status of all items, hands on and scheduled receipts from suppliers
CHALLENGES IN MRP
Uncertainty
Timing of supply
Timing of demand
Quantity demanded
Quality demanded
Applied in a rolling horizon basis