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Demand. BOM. Material Data. M aterial R equirements P lanning. Inputs. Output. Planned Orders. Inputs. Demand. Output. Planned Orders. BOM. Material Data. M aterial R equirements P lanning. With MRP, production is planned to meet: Future demand forecasts (make-to-stock) - PowerPoint PPT Presentation
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Material Requirements Planning
Planned Orders
Demand
BOM
MaterialData
Inputs
Output
Material Requirements Planning
PlannedOrders
Demand
BOM
MaterialData
Inputs
Output
With MRP, production is planned to meet: Future demand forecasts (make-to-stock) Orders to be completed in the future (make-
to-order or assemble-to-order) A key input is, therefore, actual demand or a
demand forecast
MRP is a Push production system
Material Requirements Planning
PlannedOrders
Demand
BOM
MaterialData
Inputs
Output
Planning Sales and Operations Planning (SOP)
Forecasting, marketing plans, capacity Profitability Analysis
Controlling (CO) Module (CO-PA) Direct Input (Demand Management)
Demand Sources
Demand Management
• Simplest way to create demand it to input it directly:
Demand
Demand—S/R List
Material Requirements Planning
PlannedOrders
Demand
BOM
MaterialData
Inputs
Output
MRP uses the assembly structure, or Bill of Material (BOM) to determine how many components or subassemblies are needed to make the required number of finished products Considers available inventory of
components and subassemblies in calculations—net requirements
MRP is designed for assembled products
Material Requirements Planning
PlannedOrders
Demand
BOM
MaterialData
Inputs
Output
For end-items, demand is “independent”—from customers
For other components, demand can be determined using the BOM Dependent demand
MRP is designed for assembled products
Material Requirements Planning
PlannedOrders
Demand
BOM
MaterialData
Inputs
Output## NRG–A
(7 cases)
## Dough NRG–A(500 lb)
## Oats(300 lb)
## Wheat Germ(50 lb)
## Carob Chips(50 lb)
## Raisins(50 lb)
Material Requirements Planning
PlannedOrders
Demand
BOM
MaterialData
Inputs
Output## NRG–A
(7 cases)
## Dough NRG–A(500 lb)
## Oats(300 lb)
## Wheat Germ(50 lb)
## Carob Chips(50 lb)
## Raisins(50 lb)
Time
Key MRP concept:
Time-phased BOM
Bill of Material (BOM)
Bill of Material (BOM)
## NRG–A(7 cases)
## Dough NRG–A(500 lb)
Bill of Material (BOM)
## NRG–A(7 cases)
## Dough NRG–A(500 lb)
Bill of Material (BOM)
## Dough NRG–A(500 lb)
## Oats(300 lb)
## Wheat Germ(50 lb)
## Nutmeg(2 lb)
## Cinnamon(5 lb)
Bill of Material (BOM)
## Dough NRG–A(500 lb)
## Oats(300 lb)
## Wheat Germ(50 lb)
## Nutmeg(2 lb)
## Cinnamon(5 lb)
Material Requirements Planning
PlannedOrders
Demand
BOM
MaterialData
Inputs
Output
Primary material data includes: Current Inventory Lot sizing procedure Production lead times
All of this data is available in SAP via the Stock/Requirements List
Material Data determines production lot size and timing
Material Data—S/R List
Inventory Level0
Inventory Detail
Inventory—Detail
Material Data—S/R List
Lot SizeFX, 7
Material Data—S/R List
LeadTime1
Material Requirements Planning
Material Requirements Planning
Material Requirements Planning
Material Requirements Planning
Material Requirements Planning
Material Requirements Planning
Material Requirements Planning
MRP—Net Requirements
Part: A
LS: 50 LT: 2 1 2 3 4 5 6 7 8 9 10
Gross Requirements 10 10 15 15 15 20 20 15 10 10
Scheduled Receipts 50
Planned Order Receipts 50 50
Available Balance 15 5 45 30 15 0 30 10 45 35 25
Planned Order Releases 50 50
Textbook MRP uses a bucketed system
Textbook MRP
Textbook MRP
LS - lot size - size of production batch or lot sizing methodGross Requirements - quantity needed in each period - from MPS or from other components and assembliesScheduled Receipts - Planned receipt dates for orders that have already been placedPlanned Order Receipts - expected receipt date for planned orders (orders that haven't been placed yet)Available Balance - Projected inventory balance at the end of each periodPlanned Order Releases - Orders that need to be placed (as determined by MRP process) to meet gross requirements (source of planned order receipts)
C
B C D
A
(2)
MPS Period
Part # 1 2 3 4 5 6 7 8 9 10 A 10 10 15 10 10 5 10 10 15 15
Inventory Data
Component
LS
LT
Initial Inventory
Scheduled Receipts
A LFL 1 - 10 in pd. 1 B 50 2 30 50 in pd. 2 C 50 3 40 50 in pd. 3 D 30 4 30
30 in pd. 3
Textbook MRP—Example Problem