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Slides For Chapter 15 MRP
Slides For Chapter 15 MRP
Chapter 15
Materials Requirements
Planning
The McGraw-Hill Companies, Inc.,
Given
Giventhe
theproduct
productstructure
structuretree
treefor
forA
Aand
andthe
thelead
leadtime
timeand
and
demand
demandinformation
informationbelow,
below,provide
provideaamaterials
materialsrequirements
requirements
plan
planthat
thatdefines
definesthe
thenumber
numberof
ofunits
unitsof
ofeach
eachcomponent
componentand
and
when
whenthey
theywill
willbe
beneeded
needed
Product Structure Tree for Assembly A
A
B(4)
D(2)
C(2)
E(1)
D(3)
F(2)
Lead Times
A
1 day
B
2 days
C
1 day
D
3 days
E
4 days
F
1 day
Total Unit Demand
Day 10 50 A
Day 8
20 B (Spares)
Day 6
15 D (Spares)
The McGraw-Hill Companies, Inc.,
First,
First, the
the number
numberof
of units
units of
of A
A are
arescheduled
scheduled
backwards
backwards to
to allow
allowfor
fortheir
theirlead
lead time.
time. So,
So, in
in the
the
materials
materials requirement
requirement plan
plan below,
below,we
wehave
haveto
toplace
place
th
an
an order
orderfor
for50
50 units
units of
of A
A on
on the
the 99th day
day to
to receive
receive
them
them on
on day
day 10.
10.
Day:
A Required
Order Placement
10
50
50
LT = 1 day
Next,
Next,we
weneed
needto
tostart
startscheduling
schedulingthe
thecomponents
componentsthat
thatmake
makeup
up
A.
A. In
Inthe
thecase
caseof
ofcomponent
componentB
Bwe
weneed
need44Bs
Bsfor
foreach
eachA.
A.
Since
Sincewe
weneed
need50
50As,
As,that
thatmeans
means200
200Bs.
Bs. And
Andagain,
again,we
weback
back
the
theschedule
scheduleup
upfor
forthe
thenecessary
necessary22days
daysof
oflead
leadtime.
time.
Day:
A Required
Order Placement
B Required
Order Placement
20
LT = 2
A
B(4)
D(2)
20
50
200
10
50
200
Spares
4x50=200
C(2)
E(1)
D(3)
F(2)
The McGraw-Hill Companies, Inc.,
Finally,
Finally,repeating
repeatingthe
theprocess
processfor
forall
allcomponents,
components,we
wehave
havethe
the
final
finalmaterials
materialsrequirements
requirementsplan:
plan:
Day:
A
LT=1
B
LT=2
C
LT=1
D
LT=3
E
LT=4
F
LT=1
Required
Order Placement
Required
Order Placement
Required
Order Placement
Required
Order Placement
Required
Order Placement
Required
Order Placement
20
20
50
200
10
50
200
100
55
20
400
55
400
20
200
100
300
300
200
200
200
A
Part D: Day 6
B(4)
D(2)
C(2)
E(1)
D(3)
40 + 15 spares
F(2)
MPS
(Specific End Items)
Exhibit
Exhibit15.5
15.5
Frozen
Flexible
Capacity
15
26
Weeks
10
11
Aggregate
product
plan
Firm orders
from known
customers
Engineering
design
changes
Forecasts
of demand
from random
customers
Master production
Schedule (MPS)
Bill of
material
file
Primary reports
Planned order schedule for
inventory and production
control
Material
planning
(MRP
computer
program)
Inventory
transactions
From
FromExhibit
Exhibit15.6
15.6
Inventory
record file
Secondary reports
Exception reports
Planning reports
Reports for performance
control
The McGraw-Hill Companies, Inc.,
12
Materials
Parts
Components
Production sequence
Modular BOM
Subassemblies
Super BOM
Fractional options
The McGraw-Hill Companies, Inc.,
13
Pegging
14
15
16
17
MRP Example
Item
X
A
B
C
D
X
A(2)
C(3)
B(1)
C(2)
D(5)
Requirements
Requirementsinclude
include95
95units
units(80
(80firm
firmorders
ordersand
and15
15forecast)
forecast)of
ofXX
in
inweek
week10
10
18
Day:
A(2)
ItIttakes
takes
22As
Asfor
for
each
eachXX
X
LT=2
Onhand
50
A
LT=3
Onhand
75
B
LT=1
Onhand
25
C
LT=2
Onhand
10
D
LT=2
Onhand
20
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
10
95
50 50
50
50
50
50
50
50
50
50
45
45
45
90
75 75
75
75
75
75
75
75
15
15
15
45
25 25
25
25
25
25
10
10
35
25
20
20
20
40
45
10 10
25
10
35
35
40
40
40
100
20 20
20
20
20
20
20
80
80
80
The McGraw-Hill Companies, Inc.,
19
Day:
X
LT=2
A(2)
B(1)
ItIttakes
takes
11BBfor
for
each
eachXX
Onhand
50
A
LT=3
Onhand
75
B
LT=1
Onhand
25
C
LT=2
Onhand
10
D
LT=2
Onhand
20
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
10
95
50 50
50
50
50
50
50
50
50
50
45
45
45
90
75 75
75
75
75
75
75
75
15
15
15
45
25 25
25
25
25
25
10
10
35
25
20
20
20
40
45
10 10
25
10
35
35
40
40
40
100
20 20
20
20
20
20
20
80
80
80
The McGraw-Hill Companies, Inc.,
20
Day:
X
LT=2
A(2)
C(3)
ItIttakes
takes33
Cs
Csfor
for
each
eachAA
B(1)
Onhand
50
A
LT=3
Onhand
75
B
LT=1
Onhand
25
C
LT=2
Onhand
10
D
LT=2
Onhand
20
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
10
95
50 50
50
50
50
50
50
50
50
50
45
45
45
90
75 75
75
75
75
75
75
75
15
15
15
45
25 25
25
25
25
25
10
10
35
25
20
20
20
40
45
10 10
25
10
35
35
40
40
40
100
20 20
20
20
20
20
20
80
80
80
The McGraw-Hill Companies, Inc.,
21
Day:
X
LT=2
A(2)
C(3)
B(1)
C(2)
ItIttakes
takes22
Cs
Csfor
for
each
eachBB
Onhand
50
A
LT=3
Onhand
75
B
LT=1
Onhand
25
C
LT=2
Onhand
10
D
LT=2
Onhand
20
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
10
95
50 50
50
50
50
50
50
50
50
50
45
45
45
90
75 75
75
75
75
75
75
75
15
15
15
45
25 25
25
25
25
25
10
10
35
25
20
20
20
40
45
10 10
25
10
35
35
40
40
40
100
20 20
20
20
20
20
20
80
80
80
The McGraw-Hill Companies, Inc.,
22
Day:
X
LT=2
A(2)
C(3)
B(1)
C(2)
D(5)
ItIttakes
takes55
Ds
Dsfor
foreach
each
BB
Onhand
50
A
LT=3
Onhand
75
B
LT=1
Onhand
25
C
LT=2
Onhand
10
D
LT=2
Onhand
20
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
Gross requirements
Scheduled receipts
Proj. avail. balance
Net requirements
Planned order receipt
Planner order release
10
95
50 50
50
50
50
50
50
50
50
50
45
45
45
90
75 75
75
75
75
75
75
75
15
15
15
45
25 25
25
25
25
25
10
10
35
25
20
20
20
40
45
10 10
25
10
35
35
40
40
40
100
20 20
20
20
20
20
20
80
80
80
The McGraw-Hill Companies, Inc.,
23
No
Feedback
Realistic?
Feedback
Yes
Execute:
Capacity Plans
Material Plans
24
manufacturing
marketing
finance
engineering
25
Lot-for-lot (L4L)
Economic order quantity (EOQ)
Least total cost (LTC)
Least unit cost (LUC)
Which one to use?
The one that is least costly!