Mrp Process and Inventory Management
12 Mar 13
MRP Notes
What is MRP
Material Requirements Planning (MRP) is a software-based (production) planning and inventory control system used to manage manufacturing processes.
MRP is a technique that uses the bill of material, inventory data and a master schedule to calculate requirements for material.
MRP time phases material requirements based on setbacks defined by a combination of the bill of material structure and assembly lead times. The result of an MRP plan is a material plan for each item found in the bill of material structure which indicates the amount of new material required, the date on which it is required -the new schedule dates for material that is currently on order.
The user can create any number of simultaneous MRP ‘plans’ using any number of master schedules for simulation purposes. In addition to demands from the master schedule, or in lieu of a master schedule, the MRP system can use time phased reorder points to generate demand over a user specified period of time.
The MRP can be run for any number entities (which could be physically separated inventories) and can include distributor inventories, if the system has access to this type of information (although this might now be refined to be called Enterprise Resource Planning (ERP) where the data flow and decision making extends beyond the boundary of the company).
The planning process will take account of engineering changes and exhaust types of revision change and if multiple distributor inventories are being managed, the MRP / DRP process will try to balance their inventories based on a series of parameters specified by the user.
The implementation of the MRP plan can be done by an automatic reschedule for the work in process jobs and repetitive processes and an automatic creation of purchasing requisitions to implement the purchasing plan. The reschedule of existing purchasing orders is managed through a series of reports and queries but will not be done
MRP Notes
What is MRP
Material Requirements Planning (MRP) is a software-based (production) planning and inventory control system used to manage manufacturing processes.
MRP is a technique that uses the bill of material, inventory data and a master schedule to calculate requirements for material.
MRP time phases material requirements based on setbacks defined by a combination of the bill of material structure and assembly lead times. The result of an MRP plan is a material plan for each item found in the bill of material structure which indicates the amount of new material required, the date on which it is required -the new schedule dates for material that is currently on order.
The user can create any number of simultaneous MRP ‘plans’ using any number of master schedules for simulation purposes. In addition to demands from the master schedule, or in lieu of a master schedule, the MRP system can use time phased reorder points to generate demand over a user specified period of time.
The MRP can be run for any number entities (which could be physically separated inventories) and can include distributor inventories, if the system has access to this type of information (although this might now be refined to be called Enterprise Resource Planning (ERP) where the data flow and decision making extends beyond the boundary of the company).
The planning process will take account of engineering changes and exhaust types of revision change and if multiple distributor inventories are being managed, the MRP / DRP process will try to balance their inventories based on a series of parameters specified by the user.
The implementation of the MRP plan can be done by an automatic reschedule for the work in process jobs and repetitive processes and an automatic creation of purchasing requisitions to implement the purchasing plan. The reschedule of existing purchasing orders is managed through a series of reports and queries but will not be done