MRP calculation
Supply chain / value chain
Processes in a manufacturing plant
Typical warehouse process
Mechanisms for controlling material flow PMFC – Production and material flow control Push: order and production schedules are based on forecast Pull: consumption or exact order induces the replenishment
MRP systems Estimated demands Production plan MRP I:Material Requirement Planning MRP II: Manufacturing Resource Planning 6
ERP systems ERP (HR, Financial, Controlling &Accounting, Logistics, Payroll, Maintenance) MRP II – function in ERPs ERP II – extended between Supply chain partners 7
ERP, MRP
MRP I INPUT data Sales orders (prognosis) BOM Deadlines (scheduled Vendors, lead times Inventory OUTPUT data Schedule of purchases and manufacturing: (deadline of placing orders, order quantities)
MRP II – manufacturing plans MRP I data extended INPUT data: Production data (capacity norms, lead times, alternative routes) OUTPUT data Schedule of orders: (deadlines, quantities) Production plan, production instructions – resource allocation
MRP graph
MRP calculation Sales order: 2500 pcs of finished good „A” for the 9th week On inventory: 500 pcs A (FG) 200 pcs C (Component) 600 pcs E (Component) 100 pcs D (Component) Regular delivery: 400 pcs/week B (Component) 200 pcs/week C (Component)
MRP calculation 2500 Weeks 2500 500 500 500 500 500 500 500 500 500 2000 2000 7200 400 800 1200 1600 2000 2400 2800 400 800 3200 1200 3600 4800 4800 4000 400 600 800 1000 1200 1400 1600 200 1800 400 2000 2400 2400 8000 100 100 100 100 100 100 100 100 100 7900 7900 4800 4800 4000 600 600 600 600 600 600 600 600 600 4200 4800 4000 4200 4800 4000 9600 9600 9600