This document provides an overview of material requirements planning (MRP). MRP is a computer-based information system that translates master schedule requirements for end items into time-phased requirements for subassemblies, components, and raw materials. The key inputs to MRP are the master production schedule, bill of materials, and inventory records. MRP processing involves calculating gross requirements, scheduled receipts, projected on hand, net requirements, planned-order receipts, and planned-order releases. The primary outputs of MRP are planned orders, order releases, and changes to due dates or order quantities. MRP provides advantages like minimized inventory, accurate information, and greater responsiveness, but also has disadvantages such as reliance on accurate information

1. Branch : Mechanical 6-D-1
Prepared by:Dangar Shivji S.(1501231190016
Submitted to: Prof. Nilesh Gupta
Computer Aided DesignComputer Aided Design
(2161903)(2161903)
Input To MRP

2. MRPMRP
Material requirements planning (MRP):
Computer-based information system that translates
master schedule requirements for end items into
time-phased requirements for subassemblies,
components, and raw materials.

3. Overview of MRPOverview of MRP
MRP Inputs MRP Processing MRP Outputs
Master
schedule
Bill of
materials
Inventory
records
MRP computer
programs
Changes
Order releases
Planned-order
schedules
Exception reports
Planning reports
Performance-
control
reports
Inventory
transaction
Primary
reports
Secondary
reports

4. Master Production Schedule (MPS) – States which
end items are to be produced, when they are needed,
and in what quantities
Bill of Materials (BOM) – a listing of all of the raw
materials, parts, and sub-assemblies needed to
produce one unit of a product
Inventory Records – includes information on the
status of an item during the planning horizon, eg.
quantity, supplier, order lead time, lot size
MRP InputsMRP Inputs

5. 14-5
MRP ProcessingMRP Processing
Gross requirements
Schedule receipts
Projected on hand
Net requirements
Planned-order receipts
Planned-order releases

6. 14-6
MPR Processing
Gross requirements
◦ Total expected demand
Scheduled receipts
◦ Open orders scheduled to arrive
Planned on hand
◦ Expected inventory on hand at the beginning of
each time period

7. MPR Processing
Net requirements
◦ Actual amount needed in each time period
Planned-order receipts
◦ Quantity expected to received at the beginning of the
period
◦ Offset by lead time
Planned-order releases
◦ Planned amount to order in each time period

8. 14-8
Updating the SystemUpdating the System
Regenerative system
◦ Updates MRP records periodically
Net-change system
◦ Updates MPR records continuously

9. 14-9
MRP Primary ReportsMRP Primary Reports
Planned orders - schedule indicating the amount
and timing of future orders.
Order releases - Authorization for the execution
of planned orders.
Changes - revisions of due dates or order
quantities, or cancellations of orders.

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10
Requirements of MRPRequirements of MRP
Computer and necessary software
Accurate and up-to-date
◦ Master schedules
◦ Bills of materials
◦ Inventory records
Integrity of data

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MRP in ServicesMRP in Services
Service applications such as:
◦ Professional services
◦ Postal services
◦ Retail
◦ Banking
◦ Healthcare
◦ Higher education
◦ Engineering
◦ Logistical services
◦ Real estate

12. Advantages of MRPAdvantages of MRP
 Company Advantages  Individual Advantages
 Minimize Inventory
 Accurate Information
 Greater Responsiveness
to Market
 Future Capacity Planning
 Production
Planners/Managers
 Plant Foremen
 Customer Service
Representative
 Purchasing Manager
 Inventory Manager

13.  Reliance on Information
 Increased Material Costs
 Hazard of Production Slowdown or Shutdown
 Hazard of Stock Out
 Doesn’t account for Plant & Distribution Capacity
 Implementation Difficulties
Disadvantages of MRPDisadvantages of MRP

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