1. Session 10 Material Requirements Planning http://www. pom
Session 10 Material Requirements Planning lecture session 10
Material Requirements Planning: Role in the MPC System
Evolution in Material Planning
Basic MRP of Record Processing
Information Timing
Technical Issues

2. Manufacturing Planning and Control System

3. Evolution in Material Planning
Independent vs. Dependent Demand Items
MRP
Closed loop MRP systems
MRP II (Manufacturing Resource Planning)
ERP

4. Basic MRP Records and Record Processing: Example
Develop an MRP spreadsheet record for six periods using the following parameters for the item:
Period
Gross requirements
Lead time period
Lot size units
Safety stock units
Inventory units
Scheduled receipt 40 units in period 1

5. Basic MRP Records and Record Processing: Example (Continued)
In what periods are there planned order releases?
What happens to the timing, number of planned order releases, and average inventory (for periods l through 6) if 10 units of safety stock are required?
What happens to the timing, number of planned order releases, and average inventory (for periods 1 through 6) if a one-period safety lead time is used instead of the safety stock?

6. Basic MRP Records and Record Processing
No safety stock
Three planned orders in periods 2, 3, and 5. Average projected inventory is units.

7. Information Timing Gross Requirements - Beginning of Period
Scheduled Receipts - Beginning of Period
Projected Available Balance - End of Period
Planned Order Release - Beginning of Period

8. Basic MRP Records and Record Processing (Continued)
Safety stock of 10 units
Q = 40, LT = 1, SS = 10
Three planned orders in periods 1, 3, and 4. Two planned orders were moved up because of the safety stock requirement. Average projected inventory is units.

9. Basic MRP Records and Record Processing
No safety stock
Three planned orders in periods 2, 3, and 5. Average projected inventory is units.

10. Basic MRP Records and Record Processing (Continued)
Safety Lead Time of 1 period
Three planned orders in periods 1, 2, and 4. All of the planned orders were moved up by 1 period to account for the safety lead time. Average projected inventory is units.
Using safety stocks or safety lead time causes the system to hold more inventory and order earlier. The safety lead time causes all orders to be held an extra period in inventory

11. Technical Issues Net Requirements Lot Sizing
Lot-For-Lot (L4L)
Fixed Order Quantities (Q)
Safety Stock and Safety Lead Time
Incorporating Service Part Demand
Scheduled Receipts versus Planned Order Releases
Firm Planned Orders