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OUTPUTS

FROM
MRP

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP
Computer-based information system
that translates master schedule
requirements for end items into timephased requirements for
subassemblies, components and raw
materials.

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

Overview of MRP

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Output
MRP
explosion

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Output
MRP
explosion

Material requirements plan


Action notices
Releasing new orders
Adjusting due dates

Priority reports
Dispatch lists
Supplier schedules

Capacity reports
Capacity requirements planning
Finite capacity scheduling
Input-output control

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Output
MRP
explosion

Material requirements plan


Action notices
Releasing new orders
Adjusting due dates
Routings
and time
standards

Priority reports
Dispatch lists
Supplier schedules

Capacity reports
Capacity requirements planning
Finite capacity scheduling
Input-output control

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Output
MRP
explosion

Material requirements plan


Action notices
Releasing new orders
Adjusting due dates
Routings
and time
standards

Priority reports
Dispatch lists
Supplier schedules

Capacity reports
Capacity requirements planning
Finite capacity scheduling
Input-output control

Manufacturing resources plan


Performance reports

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Output
MRP
explosion

Material requirements plan


Action notices
Releasing new orders
Adjusting due dates
Routings
and time
standards

Priority reports
Dispatch lists
Supplier schedules

Capacity reports
Capacity requirements planning
Finite capacity scheduling
Input-output control

Manufacturing resources plan


Performance reports

Cost and
price data

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

Additional MRP Scheduling


Terminology
Gross Requirements-total requirements
for a component or end product
Scheduled receipts-when a purchase or
product order that has already been
placed will be available
Planned order release-how many and
when to produce to meet gross
requirements
To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Explosion
Item: Seat subassembly
Lot size: 230 units
Week
Lead
time: 2 weeks

Gross
requirements

150

120

150

120

Scheduled
receipts

230

117

117

117

227

227

77

187

187

Projected
on-hand
inventory

37

Planned
receipts
Planned order
releases

230

230

230

230

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Explosion
Item: Seat subassembly
Lot size: 230 units
Week
Lead
time: 2 weeks
Gross
requirements

150

120

150

120

Planned
receipts
Planned
order
releases

230

230

230

230

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Explosion
Item: Seat subassembly
Lot size: 230 units
Week
Lead
time: 2 weeks
Gross
requirements

150

120

150

120

Planned
receipts

230

Planned
order
releases

230

230

230

Item: Seat frames


Lot size: 300 units

Item: Seat cushion


Lot size: L4L
Week

Lead
time: 1 week

Week
6

Gross
requirements
Scheduled
receipts

Lead
time: 1 week

Gross
requirements
0

300

Scheduled
receipts

Projected
on-hand 40
inventory

Projected
on-hand
inventory

Planned
receipts

Planned
receipts

Planned
order
releases

Planned
order
releases

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Explosion
Item: Seat subassembly
Lot size: 230 units
Week
Lead
time: 2 weeks
Gross
requirements

150

120

150

120

Planned
receipts

230

Planned
order
releases

230

230

230

Usage quantity: 1

Usage quantity: 1

Item: Seat frames


Lot size: 300 units

Item: Seat cushion


Lot size: L4L
Week

Lead
time: 1 week

Gross
requirements

230

Scheduled
receipts

300

Week
6

Lead
time: 1 week

Gross
requirements

230

Scheduled
receipts

Projected
on-hand 40
inventory

Projected
on-hand
inventory

Planned
receipts

Planned
receipts

Planned
order
releases

Planned
order
releases

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Explosion
Item: Seat subassembly
Lot size: 230 units
Week
Lead
time: 2 weeks
Gross
requirements

150

120

150

120

Planned
receipts

230

Planned
order
releases

230

230

230

Usage quantity: 1

Usage quantity: 1

Item: Seat frames


Lot size: 300 units

Item: Seat cushion


Lot size: L4L
Week

Lead
time: 1 week

Gross
requirements

230

230

Scheduled
receipts

300

Week
6

Lead
time: 1 week

Gross
requirements

230

230

Scheduled
receipts

Projected
on-hand 40
inventory

Projected
on-hand
inventory

Planned
receipts

Planned
receipts

Planned
order
releases

Planned
order
releases

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Explosion
Item: Seat subassembly
Lot size: 230 units
Week
Lead
time: 2 weeks
Gross
requirements

150

120

150

120

Planned
receipts

230

Planned
order
releases

230

230

230

Item: Seat frames


Lot size: 300 units

Item: Seat cushion


Lot size: L4L
Week

Lead
time: 1 week

Week

Gross
requirements

230

230

Scheduled
receipts

300

Projected
on-hand 40
inventory

40

110

110

110

180

180

180

Planned
receipts
Planned
order
releases

300

300

Lead
time: 1 week

Gross
requirements

230

230

Scheduled
receipts

180

Projected
on-hand
inventory

Planned
receipts
Planned
order
releases

230

230

230

230

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Explosion
Item: Seat frames
Lot size: 300 units

Item: Seat cushion


Lot size: L4L
Week

Week

Lead
time: 1 week

Gross
requirements

230

230

Planned
receipts
Planned
order
releases

300

300

Lead
time: 1 week

Gross
requirements

230

230

Planned
receipts
Planned
order
releases

230

230

230

230

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Explosion
Item: Seat frames
Lot size: 300 units

Item: Seat cushion


Lot size: L4L
Week

Week

Lead
time: 1 week

Gross
requirements

230

230

Planned
receipts

Gross
requirements

230

230

Planned
receipts

300

Planned
order
releases

Lead
time: 1 week

Planned
order
releases

300

230

230

230

230

Item: Seat-frame boards


Lot size: 1500 units
Week
Lead
time: 1 week

Gross
requirements
Scheduled
receipts
Projected
on-hand 200
inventory
Planned
receipts
Planned
order
releases

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Explosion
Item: Seat frames
Lot size: 300 units

Item: Seat cushion


Lot size: L4L
Week

Week

Lead
time: 1 week

Gross
requirements

230

230

Planned
receipts

Gross
requirements

230

230

Planned
receipts

300

Planned
order
releases

Lead
time: 1 week

Planned
order
releases

300

230

230

230

230

Usage quantity: 4
Item: Seat-frame boards
Lot size: 1500 units
Week
Lead
time: 1 week

Gross
requirements

1200

Scheduled
receipts

Projected
on-hand 200
inventory
Planned
receipts
Planned
order
releases

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.

MRP Explosion
Item: Seat frames
Lot size: 300 units

Item: Seat cushion


Lot size: L4L
Week

Week

Lead
time: 1 week

Gross
requirements

230

230

Planned
receipts

Gross
requirements

230

230

Planned
receipts

300

Planned
order
releases

Lead
time: 1 week

Planned
order
releases

300

230

230

230

230

Item: Seat-frame boards


Lot size: 1500 units
Week
Lead
time: 1 week

Gross
requirements

1200

Scheduled
receipts

Projected
on-hand 200
inventory

200

200

200

500

500

500

500

500

Planned
receipts
Planned
order
releases

1500

1500

To Accompany Ritzman & Krajewski Foundations of Operations Management, 2003 Prentice Hall, Inc. All rights reserved.