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Material Requirements Planning

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Material Requirements Planning Inputs Demand Output Planned Orders BOM Material Data Material Requirements Planning With MRP, production is planned to meet: Future ... – PowerPoint PPT presentation

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Title: Material Requirements Planning


1
Material Requirements Planning
Inputs
Output
Planned Orders
2
Material Requirements Planning
MRP is a Push production system
  • 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

3
Material Requirements Planning
Demand Sources
  • Planning
  • Sales and Operations Planning (SOP)
  • Forecasting, marketing plans, capacity
  • Profitability Analysis
  • Controlling (CO) Module (CO-PA)
  • Direct Input (Demand Management)

4
Demand Management
  • Simplest way to create demand it to input it
    directly

5
Demand
6
DemandS/R List
7
Material Requirements Planning
MRP is designed for assembled products
  • 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 calculationsnet requirements

8
Material Requirements Planning
MRP is designed for assembled products
  • For end-items, demand is independentfrom
    customers
  • For other components, demand can be determined
    using the BOM
  • Dependent demand

9
Material Requirements Planning
NRGA (7 cases)
Dough NRGA (500 lb)
Oats (300 lb)
Wheat Germ (50 lb)
Carob Chips (50 lb)
Raisins (50 lb)
10
Material Requirements Planning
Key MRP concept Time-phased BOM
NRGA (7 cases)
Dough NRGA (500 lb)
Oats (300 lb)
Wheat Germ (50 lb)
Carob Chips (50 lb)
Raisins (50 lb)
Time
11
Bill of Material (BOM)
12
Bill of Material (BOM)
13
Bill of Material (BOM)
14
Bill of Material (BOM)
15
Bill of Material (BOM)
16
Material Requirements Planning
Material Data determines production lot size and
timing
  • 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

17
Material DataS/R List
Inventory Level 0
Inventory Detail
18
InventoryDetail
19
Material DataS/R List
Lot Size FX, 7
20
Material DataS/R List
LeadTime 1
21
Material Requirements Planning
22
Material Requirements Planning
23
Material Requirements Planning
24
Material Requirements Planning
25
Material Requirements Planning
26
Material Requirements Planning
27
Material Requirements Planning
28
MRPNet Requirements
29
Textbook MRP
Textbook MRP uses a bucketed system
30
Textbook MRP
LS - lot size - size of production batch or lot
sizing method Gross Requirements - quantity
needed in each period - from MPS or from other
components and assemblies Scheduled Receipts -
Planned receipt dates for orders that have
already been placed Planned 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
period Planned Order Releases - Orders that need
to be placed (as determined by MRP process) to
meet gross requirements (source of planned order
receipts)
31
Textbook MRPExample Problem
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