Shivom Chakravarty

Materials
Requirement
Planning
What is it about?

Independent Demand ---- Depended Demand

Concept of MRP
» Lot for Lot / Fixed Order – Inventory Ordering
» (Lower ) Level Number

Terms
» Master Production Scheduling – MPS – End
Products Requirements
» Bill of Material - BOM
» Inventory in Hand – Inventory Record File
» Lead Time (for each component) – A> Ordering
Lead Time or B> Manufacturing Lead TIme

Required Data
Examples 
Are there any
Common Use
Items??

Home Theater!
 » Let’s have that data!
» 300 Speakers in Week 10
» All Listed parts and sub-parts
» Lead Times

End Product
Requirements
and
Lead Times
Lot Size Lead Time On Hand Safety Lower Level
Discipline (Weeks) Inventory Stock   Code Item Id (Name)   1 2 3 4 5 6 7 8 9 10
Lot for Lot         0 A Gross Requirements                    
              Scheduled Receipts                    
              Projected On Hand                    
              Net Requirements                    
              Planned Order Receipts                    
              Planned Order Releases                    
                                   
          1 B Gross Requirements                    
              Scheduled Receipts                    
              Projected On Hand                    
              Net Requirements                    
              Planned Order Receipts                    
              Planned Order Releases                    
                                   
          1 C Gross Requirements                    
              Scheduled Receipts                    
              Projected On Hand                    
              Net Requirements                    
              Planned Order Receipts                    
              Planned Order Releases                    

Materials Requirement Plan

Using the Inventory Record
Another
Example??
Cycle!
» Demand : 500 Cycles to be delivered on week 22

» Parts : Saddle, Tyre, Wheel, Reflector, Frame, Chain

Assembly, Handlebar, Brakes, Fork, Rim, Spokes,
Tyre Vavle, Padal

» Lead Times : Order / Assembly

Data for Example 2

    Days  
S No Component Order Lead Time Assembly Lead Time
1Saddle 14 3
2 Tyre 5 
3 Wheel   14
4 Reflector 5 1
5 Frame 10 1
6 Chain Assembly 14 1
7 Handlebar 10 2
8 Brakes 7 1
9 Fork 4 
10 Rim 19 
11 Spokes 20 4
12 Tyre Valve 2 1
13 Padal 15 2

Lead Times - Cycle

 0                  Cycle (1)            
                                 

Saddle Wheel Chain Brakes

1    (1)     (2)       Frame (1)     Assembly (1)     (2)
                                 
                                 
RIM Spokes Fork Handle Chain Paddle
2        Tyre (1) (1) (48)   (1) Bar (1)   Wheel (1) Chain (1) (2)    
                                 
                                 
Tyre
3        Valve (1)                      

BOM – Cycle (Simplified)

» 1. Inputs – MPS, BOM, Inventory Record, Lead
Times
» 2. Do Parts Explosion!
» 3. Offset requirements (by lead times)
» 4. Netting = Gross – Available Inventory
» 5. Lot Sizing ( for placing order for procurement
or production)

Summary of
MRP Logic
Almost over 
Using a Different Lot Size Discipline
( First Min Lot Size (for a component, say,
Saddle = 150, then multiples of 20) .
» Congrats!

MRP Done !