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Former Member

The purpose of MRP

Hi all, can anyone tell me what is the purpose of MRP and how does it fit into the PP planning environment?

Thank you.

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    author's profile photo Former Member
    Former Member
    Posted on Jul 16, 2007 at 03:06 AM

    Hi,

    1. The main aim MRP is to gurantee the material availability. It is used to produce or procure the requirement quantities on time both for internal production or external procurement.

    2. This process involves monitoring of stocks , in particular automatic creation of procurement proposals for purchasing and production.

    3.The MRP Component assists and releives the MRP Controller in their area of

    responsibility.

    The MRP controller is responsible for specifying the type , quantity and time of reqmts.

    In addition he calculates when and for what qty procurement proposals need to be created.

    The MRP controller defines suitable MRP Type and lot sizing procedure for each material to determine the procurement proposals.

    4. During MRP the system calculates the Net reqmts calculation based on the formula.

    Plant stock - safety stock +Receipts qty -Reqmts qty = Available stock

    If this available stock is - ve ie Available stock < Reqmts qty

    then the system creates a procurement proposals for the shortage qty.

    5. Then the system calculates the porcurement qty based on the lotsizing procedure.

    6. Then the system carries out scheduling to calculate the order start date and order finish date.

    7.Then the system calculates the type of procurement proposals.

    ie planned orders or Purchase requisitions

    8.Then the system explodes the BOM and determines the

    dependent reqmts.

    Regards,

    nandha

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 16, 2007 at 03:18 AM

    Hi nandha ,

    Thank you for ur detail explaination.

    Regards,

    Tiger

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