344 - Materials Requirements Planning Flashcards
MRP
Materials Requirements Planning
MRP Answers:
What is needed?
How much is needed?
When is it needed?
Gross Requirements
Total expected demand for an item or raw material in a period of time
Scheduled Receipts
Open orders scheduled to arrive from vendors or elsewhere in the pipeline by the beginning of a period
Projected on Hand
Expected amount of inventory that will be on hand at the beginning of each time period
Net Requirements
The actual amount that we need to procure in each time period
Planned-order Receipts
The quantity expected to be received by the beginning of the period in which it is shown
Planned-order Releases
Planned amount to order in each time period; equals Planned-order receipts offset by lead time
MRP Processing
Gross Requirements Scheduled Receipts Projected on Hand Net Requirements Planned-order Receipts Planned-order Releases
MRP Outputs - Primary Reports
Planned orders Order Release Changes Performance-control Reports Planning Reports Exception Reports
Planned orders
Schedule indicating the amount and timing of future orders.
Order Release
Authorization for the execution of planned orders.
Changes
Revisions of due dates or order quantities, or cancellations of orders.
Performance-control Reports
Evaluate system operations
Planning Reports
Useful in forecasting future inventory requirements
