Using MRP Outputs

MRP Netting Used in MRP Used in TPOP Used in DRP Netting MRP Extensions Time-phased order point (TPOP) o Advantages 1. Keeps open-order due dates valid 2. Furnishes capacity planning system with the items planned orders 3. Plans gross requirements for the items components Distribution requirements planning o Determines need for replenishments at branch warehouses o Used time phased order approach MRP Outputs Exception Report Action Report Pegging Report Changes Affecting MRP Plan Engineering changes Excess Scrap Inventory corrections Lot Size changes Customer revision of orders Supplier/production issues MPS revisions Replanning Action report may suggest to: o Expedite order o Release a planned order o Cancel firm planned order/scheduled receipt o Delay firm planned order/scheduled receipt o Look into firm planned order/scheduled receipt Pegging Allow users to trace items gross requirements to parent sources Best to go up one level and use single-level pegging to resolve demand-supply mismatchestry to resolve them as low in the product structure as possible Full Pegging o Allows user to link item demand all the way back to the MPS o Useful for engineer-to-order, make-to-order, and products having few common components o Modifying MPS is last resort Where used list o Displays quantity of every parent item to produce one unit of a component Firm Planned Orders

 Overrides MRP logic when an order is put in firm planned status by user Planning Parameters Lot Size Lead Time: largest componenet of manufacturing LT is queue time Safety Stock Safety Lead Time Closing the Loop Who furnishes information? Who uses information?