BASICS OF

MRP
OPERATIONS MANAGEMENT
AMJAD KADRI
 MEANING & DEFINITION OF MRP
Material Requirement Planning (MRP) is a computer based
production planning & inventory control system.
MRP is concerned with both the production scheduling &
inventory control.
According to American Production & Inventory Control
Society (APICS), “ MRP constitutes a set of techniques that
use bill of material, inventory data, and the master
production schedule to calculate the requirements for
materials”.
 OBJECTIVES OF MRP

1) Inventory Reduction
2) Reduction in Production & Delivery Lead
Time
3) Realistic Commitments
4) Increased Efficiency
 ASSUMPTIONS TO DEVELOP MRP
1. File Data Integrity
2. Individual Item Lead Times are Known
3. Every Inventory Items goes into & Out of Stock
4. All Components of an Assembly are needed at the Time of Assembly
Order Release.
5. Discrete Disbursement & Usage of Components Materials
6. Process in Dependence of Manufacturing Items
Material Requirements Planning (MRP)
Final Assembly
(Manufacturing)

Part Part Sub-

Sub- Assembly B
C E
Assembly
A
Sub-
Part Assembly Part
A C B

Raw Materials