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MATERIAL REQUIREMENT (Challenges in MRP (Quantity demanded – total amount…
MATERIAL REQUIREMENT
Challenges in MRP
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Timing of demand – Total demand between now and the anticipated time for the delivery after the next one if a reorder is made now to replenish the inventory
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Objectives of MRP
Ensure the availability of materials, components, and products for planned production and for customer delivery
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Plan activities such as manufacturing, delivery schedules, and purchasing
Types of MRP system
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Bill of Materials (BOM)
Consists of information (description, quantity per assembly, quantity per end item, part number, lead times, and next higher assembly) on every items or simply require to produce an items
Inventory Status Records
Contains up to date status of all items, hands on and scheduled receipts from suppliers