1. Chapter 12a Resource Requirements Planning: MRP and CRP

2. Resource Requirements Planning Systems Estimated End Item Demands Inventory Status of End Items Needed Production of End Items Lot-Sizing and Safety Stock Policies Rough-Cut Capacity Planning Trial Master Production Schedule (MPS) Material Requirements Planning (MRP) Capacity Requirements Plan Material Requirements Plan Master Production Schedule (MSP) Purchasing Planning and Control Shop floor Scheduling and Control Capacity Economically Available? Materials Available? Modifi- cations to MPS Modifi- cations to MPS Capacity Requirements Planning (CRP) Market Research Forecast Customer Demand R&D Branch Warehouses Customer Orders Yes No

3. Part A 1234567 LFLGross Req.100300100200 LT=1Scheduled Rec.50 OH=300Available SS=50Net Req. Alloc=100Pl. Or. Receipt Pl. Or. Release Part B1234567 400+Gross Req. LT=2Scheduled Rec.100 OH=350Available SS=100Net Req. Alloc=100Pl. Or. Receipt Pl. Or. Release Part C1234567 400+Gross Req. LT=3Scheduled Rec.400 OH=300Available SS=200Net Req. Alloc=400Pl. Or. Receipt Pl. Or. Release Part D1234567 1000+Gross Req. LT=1Scheduled Rec. OH=50Available SS=50Net Req. Alloc=0Pl. Or. Receipt Pl. Or. Release A 3B4C 2D MRP Example 1 Week

4. Part A 123456 LFLGross Req.5008009001300 LT=1Scheduled Rec.100 OH=700Available SS=200Net Req. Alloc=200Pl. Or. Receipt Pl. Or. Release MRP Example 2 A 3B5C 2C3D Note: Aside from the end item, customers have also ordered 100 units of part B in week 5 and 200 units in week 6 as spares. Part B123456 Q=700 multGross Req. LT=2Scheduled Rec.4002000 OH=1700Available SS=200Net Req. Alloc=100Pl. Or. Receipt Pl. Or. Release Part C123456 10,000+Gross Req. LT=1Scheduled Rec. OH=2400Available SS=400Net Req. Alloc=300Pl. Or. Receipt Pl. Or. Release Part D123456 5000+Gross Req. LT=2Scheduled Rec.5000 OH=700Available SS=200Net Req. Alloc=400Pl. Or. Receipt Pl. Or. Release Week

5. MRP Example 2 Planned Order Release Schedule Item **RUSH** 1 2 3 4 5 6 Week A B C D

6. The Capacity Requirements Planning Process Start Change MPS, Reschedule Orders to Level Load TRIAL MASTER PRODUCTION SCHEDULE MRP SCHEDULES Planned Order Releases for All Materials Determine Routing for All Orders, Work Center Assignments Convert Lots of Materials into Labor and/or Machine Load at Work Centers Labor and/or Machine Load Schedules Can Routing Be Changed to Improve Capacity? Can Capacity Be Economically Changed? Is Capacity Available? Plan Overtime, Standby Machines, Subcontracting, etc. Firm Up the MPS Routing Plans, Overtime and Subcontracting Plans YES NO YES