MATERIAL REQUIREMENT

1) MATERIAL REQUIREMENT PLANNING (MRP)

😃 MRP is a computer-based inventory management system designed to assist production managers in scheduling and placing orders for items of dependent demand.

2) Objectives of MRP

⭐ Maintain the lowest possible level of inventory.

⭐ Plan activities such as manufacturing, delivery schedules, and purchasing.

⭐ Ensure the availability of materials, components, and products for planned production and for customer delivery.

3) Explain The Terms Inventory, Capacity and Priority in MRP.

CAPACITY
🚩 Plan for an adequate time to view future load
🚩 Plan for an accurate load
🚩 Plan for a complete load

PRIORITY
🚩 Order with the right due date
🚩 Keep the due date valid

INVENTORY
🚩 Order the right quantity
🚩 Order the right part
🚩 Order at the right time

4) Explain types of MRP system.

🔥 Bill of material (BOM)
Contains information on every items required to produce end items.

🔥 Inventory status records
Up to date status of all items, hands on & scheduled receipts from suppliers which include supplier lead time & production cycle time.

🔥 Master Production Planning
A plan for individual commodities to be produced in each time period such as production, staffing, inventory, etc

5) What are the challenges in MRP? Briefly explain.

🎉 Quantity supplied
How much product should be produced in order to satisfy customers demand and avoid excess inventory on the same time

🎉 Timing of demand
Due to different seasons and festival

🎉 Quantity demanded
Demands change rapidly from time to time

🎉 Timing of supply
What’s the best time to produce products that can meet customer demands and expectations