Material Requirements Planning (MRP)
An overview of MRP
Material Requirements Planning (MRP) is a software based production planning and inventory control system used to manage manufacturing processes. Although it is not common nowadays, it is possible to conduct MRP by hand as well. Is a computer based information system that translates the finished product requirements of the master schedule into time- phased requirements for subassemblies, component parts and raw materials, working backward from the due date using lead times and other information to determine when and how much to order. Material requirements planning is as much a philosophy as it is a technique, and as much approach to scheduling as it to inventory control.
MRP begin with a schedule for finished goods that is converted into a schedule of requirements for the subassemblies, components parts, and raw materials is needed to produce the finished items in the specified time frame. Thus, MRP is designed to answer three questions: what is needed? How much is needed? and When is needed?
Manufacturing industries must follow planning processes for every product, from its developmental stage to initial production and to final product. To outline each part of production planning, businesses use computer-based information tools such as material requirements planning, or MRP, and manufacturing resource planning, or MRP I. They function as integrated manufacturing control and activity systems
An MRP system has three major sources of information: a master schedule, a bill of materials file, and an inventory records file. A master schedule is also referred to as master production schedule, states which ends items are to be produced when they are needed, and in what quantities. Then, a bills of materials(BOM) contains a listing of all the assemblies, parts, and raw materials that are needed to produce one unit of a finished product. Thus each finished product has its own bill of...
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