How Does the Material Requirement Planning Work in Oracle System?

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Scope
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
Policy
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

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