1. Dependent demand lumpy MRP DETAILED SCHEDULE FOR RAW MATERIALS & COMPONENTS USED IN THE END PRODUCTS MASTER SCHEDULE FOR END ITEMS

2. TIME Avg. rate of demand Inv. LEVEL TIME Inv. LEVEL t1t1 t2t2 t3t3 t4t4 t5t5 t6t6

3. Ordering Lead Time: (for purchased parts) Initiation of purchase requisition Receipt of item from vendor (off shelf / fabricate) Manufacturing Lead Time: Place orderItem delivered Process part through sequence of machines as given on route sheet (operation + non-productive times)

4. C1C1 C2C2 C3C3 CnCn P1P1 P2P2 P3P3 PNPN BASIC RAW MATERIAL COMPONENTS PRODUCTS

5. Gross & Net requirements report Capacity vs Load report Shop floor Planning report Production Order Status & exceptions report Service Parts requirements Sales forecasts Customer orders Inventory transactions Master Production schedule Engg. changes Inventory Record file MRP PROCESSOR Bill of Materials file OUT PUT REPORTS …

6. DEMAND Often excluded from MPS, since it does not include end product demand. Demand for individual component Parts (for repair and service) Firms customer orders Forecasted demand Week no678910 Product P 1 50100 Product P 2 708025 Etc.

7. C1C1 C2C2 C3C3 C4C4 C5C5 C6C6 S1S1 S2S2 P1P1 (1)(2) (1)(4)(1)(2) (1) Level 0 (product) Level 1 (sub-assemblies) Level 2 (raw materials)

8. Ordering Lead time Manufacturing Lead time Purchasing records Process Route sheets

9. C1C1 C2C2 C3C3 C4C4 C5C5 C6C6 S1S1 S2S2 P1P1 (1)(2) (1)(4)(1)(2) (1) C4C4 C6C6 C7C7 C2C2 C8C8 S3S3 S4S4 P2P2 (4) (2) (1) M4M4 PRODUCT STRUCTURE FOR PRODUCTS P1 & P2 Initial inventory status for M4 AssemblyManufacturingOrdering P1 = 1 P2 = 1 S2 = 1 S3 = 1 C4 = 2M4 = 3 Lead times (in weeks) PLANNED ORDER RELEASES NET REQUIREMENTS 90ON HAND 40SCHEDULED RECEIPTS GROSS REQUIREMENTS ITEM RAW MATERIAL M4 654321PERIOD 50

10. EVOLUTION OF MRP Manufacturing Resource Planning Links up the closed loop MRP system with the financial systems of the company (Links functions -Capacity planning -Inventory management -Shop floor control -MRP) Improved computational efficiency of computers Unrealistic M/c schedules, ignoring plant capacities Not only plans priorities but provides feedback to executing the priority plan AN IMPROVED ORDERING METHOD PRIORITY PLANNING CLOSED LOOP MRP MRP II   