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MATERIAL REQUIREMENT PLANNING (OBJECTIVES :warning: (Maintain the lowest…
MATERIAL REQUIREMENT PLANNING
DEFINITION
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(MRP) is a computer-based production planning and inventory control system. MRP is 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.
OBJECTIVES
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Maintain the lowest possible level of inventory
Plan manufacturing activities, delivery schedules, and purchasing activities
Ensure the availability of materials, components, and products for planned production and for
customer delivery
TERM
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CAPACITY
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ACCURATE
load
ADEQUATE TIME
for future load
PLAN
for complete load
PRIORITY
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ORDER
with the
RIGHT DUE DATE
KEEP
the due date valid
INVENTORY
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RIGHT QUANTITY
RIGHT TIME
Order the
RIGHT PART
SYSTEM
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Bill of Material
Inventory Status Record
Master Production Schedule
CHALLENGES
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MRP applied in rolling horizon basis
MPS ---> MRP = PRODUCE PLAN ORDER ( smallchanges in MPS can cause larger changes in plan order.
Uncertainty of quantity demanded, quantity supplied, timing demanded and timing supply when lead time