Chapter 15
Materials Requirements Planning
OBJECTIVES
Material Requirements Planning (MRP) MRP Logic and Product Structure Trees Time Fences MRP Example MRP II and Lot Sizing
First, the number of units of A are scheduled backwards to allow for their lead time. So, in the materials requirement plan below, we have to place an order for 50 units of A on the 9th day to receive them on day 10.
Day: A Required Order Placement 1 2 3 4 5 6 7 8 9 50 10 50
LT = 1 day
Next, we need to start scheduling the components that make up A. In the case of component B we need 4 Bs for each A. Since we need 50 As, that means 200 Bs. And again, we back the schedule up for the necessary 2 days of lead time.
Day: A B R e q u ire d O rd e r P la c e m e n t R e q u ire d O rd e r P la c e m e n t 20 200 20 50 200 1 2 3 4 5 6 7 8 9 10 50
Spares
4x50=200
Finally, repeating the process for all components, we have the final materials requirements plan:
Day: A LT=1 B LT=2 C LT=1 D LT=3 E LT=4 F LT=1 Required Order Placement Required Order Placement Required Order Placement Required Order Placement Required Order Placement Required Order Placement 1 2 3 4 5 6 7 8 9 50 200 100 55 55 20 200 200 200 400 300 20 200 400 100 300 10 50
20 20 200
A
Part D: Day 6
C(2) F(2)
40 + 15 spares
10
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Exhibit 15.5
15 Weeks
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Determines exact unit numbers needed Determines the dates when orders for those materials should be released, based on lead times
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Inventory transactions
From Exhibit 15.6
Secondary reports
Primary reports Planned order schedule for inventory and production control Exception reports Planning reports Reports for performance control
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Super BOM
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Pegging
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MRP Example
X A(2) C(3) C(2) B(1) D(5)
Item X A B C D On-Hand Lead Time (Weeks) 50 2 75 3 25 1 10 2 20 2
20
Da 1 2 3 4 5 6 7 8 9 10 95 50 45 45
X L 2
nhand 50
A(2)
nhand 75
oss requ remen s hedu ed re e p s Proj a a ba an e Ne requ remen s Pl nned order re e p Pl nner order release ross requ remen s heduled re e p s Proj a a l. bal n e Ne requ remen s Pl nned order re e p Pl nner order release ross requ remen s heduled re e p s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release
50 50
50
50
50
50
50
50
50
45 9 75 75 75 75 75 75 75 75 15 15 45 25 25 25 25 25 25 25 25 20 20
15
45 10 10 10 10 10 35 35 40
20 40
40 40 100
35
20 20
20
20
20
20
20 80 80
80
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Da 1 2 3 4 5 6 7 8 9 10 95 50 45 45
X L 2
nhand 50
A(2)
B(1)
nhand 75
ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release
50 50
50
50
50
50
50
50
50
45 9 75 75 75 75 75 75 75 75 15 15 45 25 25 25 25 25 25 25 25 20 20
15
45 10 10 10 10 10 35 35 40
20 40
40 40 100
35
20 20
20
20
20
20
20 80 80
80
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Da 1 2 3 4 5 6 7 8 9 10 95 50 45 45
X L 2
nhand 50
A(2)
B(1)
nhand 75
C(3)
L 1 nhand 25 C L 2 nhand 10 D L 2 nhand 20
ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release
50 50
50
50
50
50
50
50
50
45 9 75 75 75 75 75 75 75 75 15 15 45 25 25 25 25 25 25 25 25 20 20
15
45 10 10 10 10 10 35 35 40
20 40
40 40 100
35
20 20
20
20
20
20
20 80 80
80
The McGraw-Hill Companies, Inc., 2004
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Da 1 2 3 4 5 6 7 8 9 10 95 50 45 45
X L 2
nhand 50
A(2)
B(1)
nhand 75
C(3)
C(2)
L 1 nhand 25 C L 2 nhand 10 D L 2 nhand 20
ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release
50 50
50
50
50
50
50
50
50
45 9 75 75 75 75 75 75 75 75 15 15 45 25 25 25 25 25 25 25 25 20 20
15
45 10 10 10 10 10 35 35 40
20 40
40 40 100
35
20 20
20
20
20
20
20 80 80
80
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Da 1 2 3 4 5 6 7 8 9 10 95 50 45 45
X L 2
nhand 50
A(2)
B(1)
nhand 75
C(3)
C(2)
D(5)
L 1 nhand 25 C L 2 nhand 10 D L 2 nhand 20
ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release ross requiremen s heduled re eip s Proj. v il. bal n e Ne requiremen s Pl nned order re eip Pl nner order release
50 50
50
50
50
50
50
50
50
45 9 75 75 75 75 75 75 75 75 15 15 45 25 25 25 25 25 25 25 25 20 20
15
45 10 10 10 10 10 35 35 40
20 40
40 40 100
35
20 20
20
20
20
20
20 80 80
80
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Yes
Execute: Capacity Plans Material Plans
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End of Chapter 15