Material Requirement Planning (MRP) - Final

Material Requirement
Planning
Production Planning and Inventory Control
Department of Industrial Engineering, ITS
Material Requirement Planning (MRP)
• A basic tool for performing the detailed material planning function in the manufacture of component
parts and their assembly into finished items
• Material requirements planning ‘explodes’ the master schedule to plan the supply of materials.
• It gives timetables for making and ordering materials, to make sure that they are available when
needed.
• The main outputs from MRP are:
o Timetables to show when materials are needed;
o Timetables to show when bought-in materials should be ordered;
o Timetables for operations needed to make materials internally
Material Requirement Planning (MRP)
Purchase
BOM Orders
Material
Orders Plan
MPS MRP
Forecast Work
Orders
Inventory
Reports
MRP Inputs
• MRP needs a lot of information, with three main sources:
o the master schedule,
o the bill of materials
o inventory records
• The master schedule (MPS) shows the number of units of a product to be made in
each period
• The inventory records show the current state of the stocks
• The bill of materials (or parts list) is an ordered list of all the materials needed to
make a product, and also the order in which the materials are used.
MRP Basic Steps
• Netting: The process of determining the net
requirement for each period during planning
horizon
• Lotting: The process of determining the lot
size or order size based on net requirement
• Offsetting: Placing the requirements in their
proper time periods based on lead time
• Explosion: The process of translating product
requirements into component part
requirements, taking existing inventories and
scheduled receipts into account.
Basic MRP Record/Matrix
Item: X Week
On Hand: 10
Lot size: Lot-for-lot 1 2 3 4 5
Lead time: 2
Gross Requirement 35
Scheduled Receipts 20
Projected Available 10 10 10 10 30
Net Requirements 5
Planned Order Receipt 5
Planned Order Release 5
Basic MRP Record
• Gross requirements represent the total needed quantity for the item on a week-by-week basis-they
are the quantity to be used during the period
• Scheduled receipts represent orders that have already been committed, either as a production order
or a purchasing order
• Projected available represents the inventory available of the component at the end of the weekly
bucket
• Net requirements are the amount needed for the week after the gross requirements have been
netted against available inventory and/or scheduled receipts.
• Planned order releases are the quantity of net requirements that are planned to be ordered or
released at the beginning of the period, taking into account lot sizes and offsetting for lead times
Example
Widgets Week 1 Week 2 Week 3 Week 4
Gross requirements 100 50
Scheduled receipts 60
On hand 20 80 -20 -50
Net requirements 20 50
Planned order releases
Lead time = 1 week

Gross to Net Explosion
Gross to net explosion is a key element of MRP systems.
Explosion is the process of translating product requirements into component part
requirements, taking existing inventories and scheduled receipts into account.
As explosion takes place, only the component part requirements net of any inventory
or scheduled receipts are considered.
• Gross requirements = number of units made × amount of material for each unit
• Net requirements = gross requirements − current stock (inventory) − stock on order (scheduled
receipt)
Example: The Alpha Beta Company
A B
LT=3 LT=2
C(3) D(2) D(3)

LT=4 LT=2 LT=2
Item On Hand Scheduled Receipts Lot Size MPS

A 10 0 L4L 100, period 8
B 5 0 L4L 200, period 6
C 140 0 150 ---
D 200 250, period 2 250 ---
Item: A Week
On hand: 10
1 2 3 4 5 6 7 8
Lot size: L4L
LT: 3
Scheduled Receipts
Projected Available 10
Net Requirements
Planned Order Receipt
Planned Order Release
Item: A Week
On hand: 10
1 2 3 4 5 6 7 8
Lot size: L4L
LT: 3
Scheduled Receipts
Projected Available 10 10 10 10 10 10 10 10
Net Requirements
Item: A Week
On hand: 10
1 2 3 4 5 6 7 8
Lot size: L4L
LT: 3
Scheduled Receipts
Projected Available 10 10 10 10 10 10 10 10 0
Net Requirements 90
Item: A Week
On hand: 10
1 2 3 4 5 6 7 8
Lot size: L4L
LT: 3
Scheduled Receipts
Net Requirements 90
Item: B Week
On hand: 5
1 2 3 4 5 6 7 8
Lot size: L4L
LT: 2
Scheduled Receipts
Net Requirements
Item: B Week
On hand: 5
1 2 3 4 5 6 7 8
Lot size: L4L
LT: 2
Scheduled Receipts
Projected Available 5 5 5 5 5 5
Net Requirements
Item: B Week
On hand: 5
1 2 3 4 5 6 7 8
Lot size: L4L
LT: 2
Scheduled Receipts
Projected Available 5 5 5 5 5 5 0
Net Requirements 195
Item: B Week
On hand: 5
1 2 3 4 5 6 7 8
Lot size:
LT: 2
Scheduled Receipts
Projected Available 5 5 5 5 5 5 0
Item: C Week
On hand: 140
1 2 3 4 5 6 7 8
Lot size: 150
LT: 4
Scheduled Receipts
Net Requirements
Item: C Week
On hand: 140
1 2 3 4 5 6 7 8
Lot size: 150
LT: 4
Scheduled Receipts
Net Requirements
Item: C Week
On hand: 140
1 2 3 4 5 6 7 8
Lot size: 150
LT: 4
Scheduled Receipts
Item: C Week
On hand: 140
1 2 3 4 5 6 7 8
Lot size: 150
LT: 4
Scheduled Receipts
Item: D Week
On hand: 200
1 2 3 4 5 6 7 8
Lot size: 250
LT: 2
Gross Requirement 585 180
Net Requirements
Item: D Week
On hand: 200
1 2 3 4 5 6 7 8
Lot size: 250
LT: 2
Projected Available 200 200 450 450
Net Requirements
Item: D Week
On hand: 200
1 2 3 4 5 6 7 8
Lot size: 250
LT: 2
Item: D Week
On hand: 200
1 2 3 4 5 6 7 8
Lot size: 250
LT: 2
Net Requirements 135 65
Planned Order Receipt 250 250
Planned Order Release 250 250
Alpha Beta Planned Order Report
Period Item Quantity
1 C 150
2 D 250
3 D 250
4 B 195
5 A 90
Planned Order Report
Lot Sizing in MRP
Lot Sizing in MRP
• A number of quantity- • Lot sizing techniques available are:
determination (lot-sizing) 1. Lot-for-Lot (L4L)
procedures have been developed 2. Economic Order Quantity (EOQ)
for determining order quantities 3. Period Order Quantity (POQ)
in MRP systems 4. Minimum Cost Per Period
5. Least Unit Cost (LUC)
6. Part Period Balancing (PPB)
7. Etc.
Lot-for-Lot (L4L)
• Also called discrete order quantity
• It generates planned orders in quantity equal to the net requirements in each period
• No extra on hand inventory
• It minimizes the amount of stock, but can give high ordering, set-up and
administration costs.
Lot-for-Lot (L4L): Example
Diketahui:
• Biaya setup (CS) = $90 per-setup dan biaya simpan (Ch) = $0.50/unit/period
• Lead time: 1 minggu
Period 1 2 3 4 5 6 Total
Demand 15 70 40 10 15 90
Projected Available Balance 15 0
Net Requirements 70 40 10 15 90
Planned Order Receipt 70 40 10 15 90
Planned Order Release 70 40 10 15 90
Economic Order Quantity (EOQ)
• People often use the economic order quantity (EOQ) as a decision rule for placing
orders in a requirements planning system because of its simplicity
• However, the EOQ model frequently must be modified in requirements planning
system applications.
• Because we base the EOQ on the assumption of constant uniform demand, the
resulting total cost expression won’t necessarily be valid for requirements planning
application
Economic Order Quantity (EOQ)
Diketahui:
• Biaya setup (CS) = $90 per-setup dan biaya simpan (Ch) = $0.50/unit/period
• Lead time: 1 minggu
• Dengan menggunakan rata-rata Demand, maka EOQ:
2𝑥𝑅𝐶𝑥𝐷 2(90)(40)
𝐸𝑂𝑄 = = = 120
𝐻𝐷 0.50
Period 1 2 3 4 5 6
Demand 15 70 40 10 15 90
Projected Available Balance 0 105 35 115 105 90 0
Periodic Order Quantities (POQ)
• Uses EOQ to calculate a fixed number of period requirements to include in each order
• Assumes a single best reorder interval (number of periods covered by a single lot)
• POQ = EOQ / Average period usage (in case of fraction, round to the nearest number)
Periodic Order Quantities (POQ)
• Dengan permasalahan yang sama, diketahui bahwa biaya setup (CS) = $90 per-setup dan biaya
simpan (Ch) = $0.50/unit/period. Lead time adalah 1 minggu dan EOQ adalah 120.
• Maka, POQ = EOQ /Average period usage = 120/40 = 3
Interval period Interval period
Period 1 2 3 4 5 6
Demand 15 70 40 10 15 90
Projected Available Balance 0 110 40 0 105 90 0
Ketidakpastian
• Ketidakpastian juga muncul dalam sistem MRP
• Untuk mengatasi dikenal safety lead time dan safety stock
Sumber Ketidakpastian
Jenis
Demand Supply
Saat kebutuhan bergeser Order tidak diterima pada

Timing waktunya
Kebutuhan lebih atau Order diterima lebih atau

Quantity kurang dari rencana kurang dari rencana
Updating Sistem MRP
• Adanya ketidakpastian mengakibatkan terjadinya perubahan-perubahan
• Diperlukan updating pada sistem sehingga diperoleh informasi terkini dan membuat
pengendalian efektif
• Dikenal dua cara updating:
o Regenerative System: updating dilakukan secara batch, misalkan mingguan atau bulanan, dll
o Net Change System: updating dilakukan setiap ada transaksi
Perbandingan Teknik Lot Sizing
• Tidak ada teknik yang superior
• Penggunaan sangat bergantung dari sifat-sifat:
o Fluktuasi demand
o Lead time
o Waktu antar pesan, dll
• Penggunaan yang diinginkan industri adalah teknik lot sizing sederhana di samping
software MRP tidak menyertakan teknik yang rumit
Kelemahan MRP
• Material requirements plan is first; capacity is an afterthought
• MRP assumes lead times are fixed and known. Dalam kenyataan, beban kerja dan
jadwal adalah saling bergantungan
• MRP cenderung menentukan lead times lebih Panjang. Estimasi konservatif (safe)
sehingga inventory tinggi
• Transfer lots yang lebih kecil dari pada production lots perlu dihindarkan padahal
cara ini akan menurunkan WIP dan lead time
• Membutuhkan data yang sangat detail dan reliable.
• Butuh sistem pelaporan yang berlebihan
Prospek MRP
• Melakukan koordinasi strategi perusahaan di antara departemen/area fungsional
• Memberikan respon yang cepat terhadap what-if questions pada berbagai level rinci
• BOM, modul-modul pembelian, dan customer order entry adalah persyaratan
standar dalam Manufacturing Information Systems
• Membangun kepercayaan (trust), teamwork dan keputusan yang lebih baik
• Perencanaan cash-flow dan proyesi profit/cost

Material Requirement Planning (MRP) - Final

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Material Requirement Planning (MRP) - Final

Uploaded by

Copyright:

Available Formats

Material Requirement

Gross requirements 100 50

On hand 20 80 -20 -50

Planned order releases

Lead time = 1 week

C(3) D(2) D(3)

Item On Hand Scheduled Receipts Lot Size MPS

Interval period Interval period

Saat kebutuhan bergeser Order tidak diterima pada

Kebutuhan lebih atau Order diterima lebih atau

You might also like