Material Resource Planning

Material Resource Planning
Material
Requirements
Planning
Product
structure
file
Master
production
schedule
Material
requirements
planning
Item
master
file
Planned
order
releases
Work
orders
Purchase
orders
Rescheduling
notices
MRP Inputs and Outputs

Inputs
Master production
schedule
Product structure file
Item master file
Outputs
Planned order
releases
Work orders
Purchase orders
Rescheduling notices
Master Production Schedule

Drives MRP process with a schedule of finished
products
Quantities represent production not demand
Quantities may consist of a combination of
customer orders and demand forecasts
Quantities represent what needs to be produced,
not what can be produced
Quantities represent end items that may or may
not be finished products

MPS ITEM
Pencil Case
Clipboard
Lapboard
Lapdesk
1
125
85
75
0
PERIOD
2
3
4
125
95
120
50
125
120
47
0
125
100
20
50
5
125
100
17
0
Product Structure
Clipboard
Top clip (1)
Pivot (1)
Bottom clip (1)
Spring (1)
Rivets (2)
Finished clipboard
Pressboard (1)
Product Structure Tree

Level 0
Clipboard
Pressboard
(1)
Top Clip
(1)
Clip Assy
(1)
Bottom Clip
(1)
Rivets
(2)
Pivot
(1)
Level 1
Spring
(1)
Level 2
Multilevel Indented BOM
Item Master File

DESCRIPTION
Item
Pressboard
Item no.
7341
Item type
Purch
Product/sales class
Comp
Value class
B
Buyer/planner
RSR
Vendor/drawing
07142
Phantom code
N
Unit price/cost
1.25
INVENTORY POLICY
Lead time
Annual demand
Holding cost
Ordering/setup cost
Safety stock
Reorder point
EOQ
Minimum order qty
Maximum order qty
1
5000
1
50
0
39
316
100
500
MRP Processes
Exploding the bill of material
Netting out the inventory
Netting
the process of subtracting on-hand quantities and
scheduled receipts from gross requirements to
produce net requirements
Lot sizing
determining the quantities in which items are usually
made or purchased
Time-phasing requirements
MRP Matrix
MRP
Clipboard
Lapdesk
85
0
95
60
120
0
100
60
100
0
Item Master File

On hand
On order
(sch receipt)
LLC
Lot size
Lead time
CLIPBOARD
25
175 (Period 1)
LAPDESK
20
0
PRESSBOARD
150
0
0
L4L
1
0
Mult 50
1
1
Min 100
1
MRP
Product Structure Record
Level 0
Clipboard
Pressboard
(1)
Clip Assy
(1)
Rivets
(2)
Level 1
Level 0
Lapdesk
Pressboard
(2)
Trim
(3)
Beanbag
(1)
Glue
(4 oz)
Level 1
MRP - 1
ITEM: CLIPBOARD
LLC: 0
LOT SIZE: L4L
Gross Requirements
85
95
Scheduled Receipts
175
Projected on Hand
Net Requirements
Planned Order Receipts
Planned Order Releases
LT: 1
PERIOD
25
120
100
100
MRP - 2
ITEM: CLIPBOARD
LLC: 0
LOT SIZE: L4L
Gross Requirements
85
95
Scheduled Receipts
175
Projected on Hand
Net Requirements
LT: 1
PERIOD
25
120
100
100
115
0

(25 + 175) = 200 units available

(200 - 85) = 115 on hand at the end of Period 1
MRP - 3
ITEM: CLIPBOARD
LLC: 0
LOT SIZE: L4L
Gross Requirements
85
95
Scheduled Receipts
175
Projected on Hand
Net Requirements
LT: 1
PERIOD
25
115
20
120
100
100

115 units available

(115 - 95) = 20 on hand at the end of Period 2
MRP - 4
ITEM: CLIPBOARD
LLC: 0
LOT SIZE: L4L
Gross Requirements
85
Scheduled Receipts
175
Projected on Hand
Net Requirements
LT: 1
PERIOD
25
95
120
100
100
115
20
100

100
100
20 units available
(20 - 120) = -100 100 additional Clipboards are required
Order must be placed in Period 2 to be received in Period 3
MRP - 5
ITEM: CLIPBOARD
LLC: 0
LOT SIZE: L4L
Gross Requirements
85
Scheduled Receipts
175
Projected on Hand
Net Requirements
LT: 1
PERIOD
25
95
120
100
100
115
20
100
100
100
100
100
100
100
100

100
Following the same logic Gross Requirements in Periods 4 and 5

develop Net Requirements, Planned Order Receipts, and Planned
Order Releases
MRP - 6
ITEM: LAPDESK
LLC: 0
LOT SIZE: MULT 50
LT: 1
Gross Requirements
Net Requirements
2
0
Scheduled Receipts
Projected on Hand
PERIOD
20
60
4
0
60
5
0
MRP - 7
ITEM: LAPDESK
LLC: 0
LOT SIZE: MULT 50
LT: 1
Gross Requirements
PERIOD
1
60
60
20
10
10
40
50
50
50
Scheduled Receipts
Projected on Hand
Net Requirements
20

50
50
Following the same logic, the Lapdesk MRP matrix is

completed as shown
MRP - 8
ITEM: CLIPBOARD
LOT SIZE: L4L
LLC: 0
LT: 1

ITEM: LAPDESK
LOT SIZE: MULT 50
LLC: 0
LT: 1
100
100
100
PERIOD
3
50
ITEM: PRESSBOARD LLC: 1

LOT SIZE: MIN 100
LT: 1
Gross Requirements
Scheduled Receipts
Projected on Hand
Net Requirements
PERIOD
3
150
50
PERIOD
3
MRP 9
ITEM: CLIPBOARD
LOT SIZE: L4L
LLC: 0
LT: 1

ITEM: LAPDESK
LOT SIZE: MULT 50
LLC: 0
LT: 1
100
100
100
PERIOD
3
x1
1
x2
100
150
x1
x1
PERIOD
3
100
200
100
50

LOT SIZE: MIN 100
LT: 1
Gross Requirements
Scheduled Receipts
Projected on Hand
Net Requirements
PERIOD
3
50
x2
MRP 10
ITEM: CLIPBOARD
LOT SIZE: L4L
LLC: 0
LT: 1

ITEM: LAPDESK
LOT SIZE: MULT 50
LLC: 0
LT: 1
100
100
100
PERIOD
3
x1
x1
PERIOD
3
100
100
200
100
50
50
50
100
150
0
150
150
100
0
100
100
1
50

LOT SIZE: MIN 100
LT: 1
150
x1
Gross Requirements
Scheduled Receipts
Projected on Hand
Net Requirements
PERIOD
3
x2
100
50
x2
MRP - 11
Planned Order Report
ITEM
Clipboard
Lapdesk
Pressboard
PERIOD
1
50
100
100
100
50
100
100
150
Copyright 2011 John Wiley & Sons, Inc.
15-38
Planned Order Report

Item
On hand
On order
Allocated
DATE
9-26
9-30
10-01
10-08
10-10
10-15
10-23
10-27
Key:
#2740
100
200
50
ORDER NO.
Date
Lead time
Lot size
Safety stock
SCHEDULED
GROSS REQS.
RECEIPTS
AL 4416
AL 4174
GR 6470
SR 7542
CO 4471
GR 6471
GR 6471
GR 6473
AL = allocated
CO = customer order
PO = purchase order
25
25
50
200
75
50
25
50
WO = work order
SR = scheduled receipt
GR = gross requirement
PROJECTED
ON HAND
50
25
0
- 50
150
75
25
0
- 50
9 - 25 - 05
2 weeks
200
50
ACTION
Expedite SR 10-01
Release PO 10-13
MRP Action Report

Current date 9-25-08
ITEM
DATE
#2740
#3616
#2412
#3427
#2516
#2740
#3666
10-08
10-09
10-10
10-15
10-20
10-27
10-31
ORDER NO. QTY.

7542
200
7648
100
200
50
ACTION
Expedite
Move forward
Move forward
Move backward
De-expedite
Release
Release
SR
PO
PO
PO
SR
PO
WO
10-01
10-07
10-05
10-25
10-30
10-13
10-24

Material Resource Planning

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Material Resource Planning

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Material Resource Planning

MRP Inputs and Outputs

Master Production Schedule

Master Production Schedule

Top clip (1)

Bottom clip (1)

Product Structure Tree

Multilevel Indented BOM

Item Master File

Item Master File

LOT SIZE: L4L

LOT SIZE: L4L

Planned Order Receipts

(25 + 175) = 200 units available

LOT SIZE: L4L

Planned Order Receipts

115 units available

LOT SIZE: L4L

Planned Order Receipts

LOT SIZE: L4L

Planned Order Receipts

Following the same logic Gross Requirements in Periods 4 and 5

LOT SIZE: MULT 50

LOT SIZE: MULT 50

Planned Order Receipts

Following the same logic, the Lapdesk MRP matrix is

Planned Order Releases

Planned Order Releases

ITEM: PRESSBOARD LLC: 1

Planned Order Releases

Planned Order Releases

ITEM: PRESSBOARD LLC: 1

Planned Order Releases

ITEM: PRESSBOARD LLC: 0

Planned Order Releases

Copyright 2011 John Wiley & Sons, Inc.

Planned Order Report

MRP Action Report

ORDER NO. QTY.

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