MGCR 472 Chapter Notes - Chapter 12: Material Requirements Planning, Operations Management, Manufacturing Resource Planning
6 Aug 2017
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Mrp is a planning technique that creates a schedule for all the (dependent-demand) items in an e(cid:374)d ite(cid:373)"s (cid:271)ill of (cid:373)aterials (cid:271)ased o(cid:374) fixed (cid:373)a(cid:374)ufa(cid:272)turi(cid:374)g lead ti(cid:373)es. The end item is created using the bill of materials. Material requirements plans are developed that show: quantity for ordering or producing components, timing for ordering or producing components. Mrp is a tool used for dependent-demand components. It assists in making the two basic decisions in inventory management: how much of each component to order, when to order it. The usage of components in production of assembled items depends on: how many of each component are needed per item, how many items are to be produced. The main features of mrp are: time-phasing of requirements, calculating component requirements, planned-order releases. To be successful, mrp requires: accurate master production schedules, bills of materials, inventory data. Firms without reasonably accurate records or schedules have experienced major difficulties in trying to implement mrp-type systems.
