MRP

instruction

OML1
The trolley from Book: Visser & van Goor

Operations Management and Logistics 1 2

Operations Management and Logistics 1 3
Operations Management and Logistics 1 4
 1 sheet for
MRP sheet every part Level in BoM
Actual stock
Item LLC
On hand How much L= Lead time of
Safety stock should always Order quantity this item
be there
period past 1 2 3 4 5 6 Amount
7 8of
Gross requirements multiple of it to
Needed of item per period produce or order
On order Will be delivered, ordered before
Planned inventory Stock at the end of period
Planned order receipts
How much has to be received per period
Planned order release
How much has to be started in production
or ordered per period

Operations Management and Logistics 1 5

STEP 1: Gross requirements
Item Trolley, A LLC 0
on hand stock 220 L= 1
safety stock 90 order quantity 150
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 180 210 100 230 50 120 130 50 100 250
On order
Planned inventory
Planned order receipts
Planned order release

Operations Management and Logistics 1 6

Item Trolley, A LLC 0
on hand stock 220 L= 1
safety stock 90 order quantity 150
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 180 210 100 230 50 120 130 50 100 250
On order 100 50 0 0 0 0 0 0 0 0
Planned inventory
Planned order receipts
Planned order release

Operations Management and Logistics 1 7

STEP 2: Inventory position & Planned order
receipts
Item Trolley, A LLC 0
on hand stock 220 L= 1
safety stock 90 order quantity 150
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 180 210 100 230 50 120 130 50 100 250
On order 100 50 0 0 0 0 0 0 0 0
Planned inventory 220
Planned order receipts
Planned order release

Operations Management and Logistics 1 8

Item Trolley, A LLC 0
on hand stock 220 L= 1
safety stock 90 order quantity 150
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 180 210 100 230 50 120 130 50 100 250
On order 100 50 0 0 0 0 0 0 0 0
Planned inventory 220 140
Planned order receipts
Planned order release

Operations Management and Logistics 1 9

Item Trolley, A LLC 0
on hand stock 220 L= 1
safety stock 90 order quantity 150
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 180 210 100 230 50 120 130 50 100 250
On order 100 50 0 0 0 0 0 0 0 0
Planned inventory 220 140 -20
Planned order receipts 0
Planned order release

Operations Management and Logistics 1 10

Item Trolley, A LLC 0
on hand stock 220 L= 1
safety stock 90 order quantity 150
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 180 210 100 230 50 120 130 50 100 250
On order 100 50 0 0 0 0 0 0 0 0
Planned inventory 220 140 130
Planned order receipts 0 150
Planned order release

Operations Management and Logistics 1 11

Item Trolley, A LLC 0
on hand stock 220 L= 1
safety stock 90 order quantity 150
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 180 210 100 230 50 120 130 50 100 250
On order 100 50 0 0 0 0 0 0 0 0
Planned inventory 220 140 130 30
Planned order receipts 0 150
Planned order release

Operations Management and Logistics 1 12

Item Trolley, A LLC 0
on hand stock 220 L= 1
safety stock 90 order quantity 150
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 180 210 100 230 50 120 130 50 100 250
On order 100 50 0 0 0 0 0 0 0 0
Planned inventory 220 140 130 180
Planned order receipts 0 150 150
Planned order release

Operations Management and Logistics 1 13

Item Trolley, A LLC 0
on hand stock 220 L= 1
safety stock 90 order quantity 150
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 180 210 100 230 50 120 130 50 100 250
On order 100 50 0 0 0 0 0 0 0 0
Planned inventory 220 140 130 180 100 200 230 100
Planned order receipts 0 150 150 150 150 150
Planned order release

Operations Management and Logistics 1 14

Item Trolley, A LLC 0
on hand stock 220 L= 1
safety stock 90 order quantity 150
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 180 210 100 230 50 120 130 50 100 250
On order 100 50 0 0 0 0 0 0 0 0
Planned inventory 220 140 130 180 100 200 230 100 200 100 150
Planned order receipts 0 150 150 150 150 150 0 150 0 300
Planned order release

Operations Management and Logistics 1 15

STEP 3: Planned order release
Item Trolley, A LLC 0
on hand stock 220 L= 1
safety stock 90 order quantity 150
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 180 210 100 230 50 120 130 50 100 250
On order 100 50 0 0 0 0 0 0 0 0
Planned inventory 220 140 130 180 100 200 230 100 200 100 150
Planned order receipts 0 150 150 150 150 150 0 150 0 300
Planned order release 150

Operations Management and Logistics 1 16

Item Trolley, A LLC 0
on hand stock 220 L= 1
safety stock 90 order quantity 150
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 180 210 100 230 50 120 130 50 100 250
On order 100 50 0 0 0 0 0 0 0 0
Planned inventory 220 140 130 180 100 200 230 100 200 100 150
Planned order receipts 0 150 150 150 150 150 0 150 0 300
Planned order release 150 150 150 150 150 0 150 0 300 0

Operations Management and Logistics 1 17

Next Low level code: B
Welded Compound
Item B LLC 1
on hand stock 250 L= 1
safety stock 100 order quantity 300
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements
On order
Planned inventory
Planned order receipts
Planned order release

Operations Management and Logistics 1 18

safety stock 90 order quantity 150
past

STEP 1: Gross requirements,

Period 1 2 3 4 from
5 6previous
7 8 LLC
9 10

Gross requirements Welded Compound

180 210 100 230 50 120 130 50 100 250
Item
On order B 100 50 LLC0 0 0 1
0 0 0 0 0
on hand stock
Planned inventory 250
220 L =
140 130 180 100 200 1
230 100 200 100 150
safety stock 200 order quantity 300
Planned order receipts 0 150 150 150 150 150 0 150 0 300
past
Planned order release 150 150 150 150 150 0 150 0 300 0
Period 1 2 3 4 5 6 7 8 9 10

Gross
Gross requirements
requirements 150 150 150 150 150 0 150 0 300 0
On order
On order
Planned
Planned inventory
inventory
Planned
Planned order
order receipts
receipts
Planned
Planned order release
order release

Operations Management and Logistics 1 19

 Welded Compound
Item B LLC 1
on hand stock 250 L= 1
safety stock 100 order quantity 300
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 150 150 150 150 150 0 150 0 300 0

On order
Planned inventory
Planned order receipts
Planned order release

Operations Management and Logistics 1 20

 Welded Compound
Item B LLC 1
on hand stock 250 L= 1
safety stock 100 order quantity 300
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 150 150 150 150 150 0 150 0 300 0

On order 0 0 0 0 0 0 0 0 0 0
Planned inventory
Planned order receipts
Planned order release

Operations Management and Logistics 1 21

STEP 2: Inventory position & Planned order
receipts
Welded Compound
Item B LLC 1
on hand stock 250 L= 1
safety stock 100 order quantity 300
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 150 150 150 150 150 0 150 0 300 0

On order 0 0 0 0 0 0 0 0 0 0
Planned inventory 250
Planned order receipts
Planned order release

Operations Management and Logistics 1 22

 Welded Compound
Item B LLC 1
on hand stock 250 L= 1
safety stock 100 order quantity 300
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 150 150 150 150 150 0 150 0 300 0

On order 0 0 0 0 0 0 0 0 0 0
Planned inventory 250 100
Planned order receipts
Planned order release

Operations Management and Logistics 1 23

 Welded Compound
Item B LLC 1
on hand stock 250 L= 1
safety stock 100 order quantity 300
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 150 150 150 150 150 0 150 0 300 0

On order 0 0 0 0 0 0 0 0 0 0
Planned inventory 250 100 -50
Planned order receipts 0
Planned order release

Operations Management and Logistics 1 24

 Welded Compound
Item B LLC 1
on hand stock 250 L= 1
safety stock 100 order quantity 300
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 150 150 150 150 150 0 150 0 300 0

On order 0 0 0 0 0 0 0 0 0 0
Planned inventory 250 100 250
Planned order receipts 0 300
Planned order release

Operations Management and Logistics 1 25

 Welded Compound
Item B LLC 1
on hand stock 250 L= 1
safety stock 100 order quantity 300
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 150 150 150 150 150 0 150 0 300 0

On order 0 0 0 0 0 0 0 0 0 0
Planned inventory 250 100 250 100 250 100 100 250 250 250 250
Planned order receipts 0 300 0 300 0 0 300 0 300 0
Planned order release

Operations Management and Logistics 1 26

STEP 3: Planned order release
Welded Compound
Item B LLC 1
on hand stock 250 L= 1
safety stock 100 order quantity 300
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 150 150 150 150 150 0 150 0 300 0

On order 0 0 0 0 0 0 0 0 0 0
Planned inventory 250 100 250 100 250 100 100 250 250 250 250
Planned order receipts 0 300 0 300 0 0 300 0 300 0
Planned order release 300

Operations Management and Logistics 1 27

 Welded Compound
Item B LLC 1
on hand stock 250 L= 1
safety stock 100 order quantity 300
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 150 150 150 150 150 0 150 0 300 0

On order 0 0 0 0 0 0 0 0 0 0
Planned inventory 250 100 250 100 250 100 100 250 250 250 250
Planned order receipts 0 300 0 300 0 0 300 0 300 0
Planned order release 300 0 300 0 0 300 0 300 0 0

Operations Management and Logistics 1 28

Next Low level code: H
Item Supports, H LLC 2
on hand stock 250 L= 1
safety stock 200 order quantity 800
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements
On order
Planned inventory
Planned order receipts
Planned order release

Operations Management and Logistics 1 29

safety stock 200 order quantity 300
past
STEP 1: Gross requirements,
Period 1 2 3 4
from
5
previous
6 7 8
LLC
9 10
(times 4, see BoM)
Gross requirements 150 150 150 150 150 0 150 0 300 0
On order 0 0 0 0 0 0 0 0 0 0
Planned inventory 250 100 250 100 250 100 100 250 250 250 250
Planned order receipts 0 300 0 300 0 0 300 0 300 0
Planned order release 300 0 300 0 0 300 0 300 0 0

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 1200 0 1200 0 0 1200 0 1200 0 0

On order 800 0 0 0 0 0 0 0 0 0
Planned inventory
Planned order receipts
Planned order release

Operations Management and Logistics 1 30

STEP 2: Inventory position & Planned order
receipts
Item Supports, H LLC 2
on hand stock 250 L= 1
safety stock 200 order quantity 800
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 1200 0 1200 0 0 1200 0 1200 0 0

On order 800 0 0 0 0 0 0 0 0 0
Planned inventory 250 650 650 250 250 250 650 650 250 250 250
Planned order receipts 800 0 800 0 0 1600 0 800 0 0
Planned order release

Operations Management and Logistics 1 31

STEP 3: Planned order release
Item Supports, H LLC 2
on hand stock 250 L= 1
safety stock 200 order quantity 800
past

Period 1 2 3 4 5 6 7 8 9 10

Gross requirements 1200 0 1200 0 0 1200 0 1200 0 0

On order 800 0 0 0 0 0 0 0 0 0
Planned inventory 250 650 650 250 250 250 650 650 250 250 250
Planned order receipts 800 0 800 0 0 1600 0 800 0 0
Planned order release 800 0 800 0 0 1600 0 800 0 0 0

This is planning in the past!

Operations Management and Logistics 1 32