SCM 303 Lecture 11: 11 MRP (Ch 6)
Document Summary
Where product requirements are exploded into individual components and subassemblies. Computer-based information system that schedules and orders dependent-demand inventory components. Used in circumstances where the demand for one item was predicated on the demand for another item (dependent the man) Uses 3 primary inputs: requires information regarding what variations of products will be produced exactly and when they are needed, master production schedule (mps, bill of materials (bom) Shows what components are used in the manufacture of the finished product, the qualities needed, lead times for each stage of production, and the order of assembly: inventory records. Knows when items will be in stock as well as the current inventory levels. Must be accurate; an active cycle counting process is usually required. Products are categorized as a, b, or c accounted on a regular basis, with the a items being counted most often. Outputs recommendations: when to release new orders. Internal production and/or supplier deliveries: when to reschedule open orders.