Materials Requeriments Planning (MRP)

Materials Requeriments Planning (MRP)

1. MRP systems for production inventory

   • Sofrtware
   • Computational costs are declining. Inventory costs are rising.

2. Is a tool for planning and controlling products, parts of products and their interactions.

   • Interest rates, materials shortages, order cancellations, etc.
   • Advantages
     • Keep priorities straight
     • Keep inventories low
     • Long-range planning
     • Early warning
   • Dynamics or time and quality
     • Control purpoces in both long and short run.

3. What should be produced? When is it need?

   • Performes the logic
   • Explodes requirement
   • Offsets lead time
   • Net out on hand and order balances
   • Linked with Master Schedule
     • Links assemble and distribution

4. Depends on the demand of a product

   • Dependent
     • Parts and components
   • Independent
     • Finished products
   • Parts orders
   • Inventories

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