Lecture Logistics theory - Lecture 16: Material requirements planning. At the end of this lecture, students should be able to understand: material requirements planning (MRP), MRP logic and product structure trees, MRP example, lot sizing in MRP programs. | Material Requirements Planning Learning objectives At the end of this lecture, students should be able to understand Material Requirements Planning (MRP) MRP Logic and Product Structure Trees MRP Example Lot Sizing in MRP Programs Material Requirements Planning Materials requirements planning (MRP) is the logic for determining the number of parts, components, and materials needed to produce a product. MRP provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced. Dependent demand drives MRP. MRP is a software system. 3 3 Example of MRP Logic and Product Structure Tree B(4) E(1) D(2) C(2) F(2) D(3) A Product Structure Tree for Assembly A Lead Times A 1 day B 2 days C 1 day D 3 days E 4 days F 1 day Demand Day 10 50 A Day 8 20 B (Spares) Day 6 15 D (Spares) Given the product structure tree for “A” and the lead time and demand information below, provide a materials requirements plan that defines the number of units | Material Requirements Planning Learning objectives At the end of this lecture, students should be able to understand Material Requirements Planning (MRP) MRP Logic and Product Structure Trees MRP Example Lot Sizing in MRP Programs Material Requirements Planning Materials requirements planning (MRP) is the logic for determining the number of parts, components, and materials needed to produce a product. MRP provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced. Dependent demand drives MRP. MRP is a software system. 3 3 Example of MRP Logic and Product Structure Tree B(4) E(1) D(2) C(2) F(2) D(3) A Product Structure Tree for Assembly A Lead Times A 1 day B 2 days C 1 day D 3 days E 4 days F 1 day Demand Day 10 50 A Day 8 20 B (Spares) Day 6 15 D (Spares) Given the product structure tree for “A” and the lead time and demand information below, provide a materials requirements plan that defines the number of units of each component and when they will be needed. 4 4 LT = 1 day 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” in the 9th week to receive them in the 10th week. 5 5 Next, we need to start scheduling the components that make up “A”. In the case of component “B” we need 4 B’s for each A. Since we need 50 A’s, that means 200 B’s. And again, we back the schedule up for the necessary 2 days of lead time. Spares LT = 2 B(4) E(1) D(2) C(2) F(2) D(3) A 4x50=200 6 6 B(4) E(1) D(2) C(2) F(2) D(3) A 40 + 15 spares Part D: Day 6 Finally, repeating the process for all components, we have the final materials requirements plan: 7 7 Material Requirements Planning System Based on a master production schedule, a material requirements planning system: Creates schedules identifying the specific parts and materials required to produce end items. Determines
