How Does the Material Requirement Planning Work in Oracle System?

Topics: Purchase requisition, Procurement, Material requirements planning Pages: 7 (1624 words) Published: February 14, 2013
This procedure covers generating and approving the Material Requirements Plan (MRP) and includes: This procedure does not cover
releasing, modifying, and canceling discrete job/repetitive schedules adding unplanned discrete job/repetitive schedules •modifying or canceling purchase orders (refer to Changing a Purchase Order [../FND/@PRO1183Y]) •updating the MPS in response to MRP

The master production schedule (MPS)
is optionally planned from the Master Demand Schedule (MDS) •is Manufacturing's response to corporate goals and to the MDS •specifies and schedules the products to be built
is published weekly
drives the material requirements plan (MRP)
The material requirements plan (MRP)
is a time-phased recommendation to build and purchase material in order to meet all internal and external requirements for manufactured items •is adjusted based on the recommendations generated by the MRP run •reflects the requirements for manufactured items based on the master production schedule (MPS) schedule •is reviewed and approved before orders are placed or rescheduled •serves as authorization to build product and to produce, purchase, and reschedule production items •is updated weekly

Demand is the total quantity of an item needed within a specified time period to fill all dependent and independent demand for that item (that is, the total quantity of orders and forecasts). A planned order

reflects the actual quantity of an item that must be produced or purchased in order to meet the requirement for that item •takes into account existing inventory levels (that is, quantity-on-hand in nettable subinventories) •may be adjusted based on order modifiers

can be automatically sourced, as with planned orders for approved suppliers A Production Control Planner, or planner, is assigned to
each manufactured item
each purchased item
Each supplier is qualified and placed on the Approved Supplier List before being assigned to an MRP planned item. Each item can have approved sourcing that can be added to each planned order. Responsibility

The Master Scheduler is responsible for
generating and adjusting the MPS
generating the MRP
responding to the MRP recommendations
The Production Control Manager is responsible for
analyzing MRP output
ensuring that the MRP is consistent with the MPS
ensuring the ability to produce the manufactured item requirements stated in the MRP •distributing a report of unreleased discrete job/repetitive schedules to Production Control Planners The Production Control Planner is responsible for

analyzing the MRP
coordinating the MRP generation, verification, and approval process The Purchasing Manager is responsible for
analyzing the MRP output
ensuring Purchasing's ability to fill requirements for purchased items as stated in the MRP •distributing a report of approved purchase requisitions to Buyers The Buyer is responsible for confirming, updating, and issuing purchase orders from purchase requisitions. Distribution

Master Scheduler*
Production Control Manager*
Production Control Planner*
Purchasing Manager*
The Production Control Manager [] is responsible for ensuring that this document is necessary and that it reflects actual practice. Activity Preface
This activity is performed weekly in response to publication of the MPS. Approved purchase requisitions are released to Purchasing during this procedure. Any required changes to purchase orders are made before the purchase order is issued to the supplier in Issuing a Purchase Order [../FND/@PRO1182Y]. Prior Activity

Master Scheduler
1. Review the MPS.
If MRP plan options are not set, goto task #2. Otherwise, goto task #3. 2. Establish the MRP plan options.
Oracle Material Planning
N > MRP > Names
B > Options
Plan Options
Establish the MRP plan options. These options will be...
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