Title
Operations Management - Materials Requirements Planning (MRP) : MRP Processing Example 3Creator
Bonnie Simmons and Memorial University. Centre for Innovation in Teaching and Learning (CITL)Description
MRP (Material Requirements Planning) determines the plans for purchasing and production of dependent-demand components. MRP processing takes end item requirements specified by the MPS (Master Production Schedule) and explodes them into time-phased requirements for fabrication or assembly of subassemblies.
This video illustrates an example of MRP for the following situation: Product P is composed of three subassemblies: K, L, and W. Subassembly K is assembled using 3 Gs and 4 Hs; L is made of 2 Ms and 2 Ns; and W is made of 3 Zs. On-hand inventories are 40 Gs, and 200 Hs. Scheduled receipts are 10 Ks at the start of week 3 and 30 Ks at the start of week 6.
One hundred Ps must be shipped at the start of week 6 and another 100 at the start of week 7. Manufacturing lead times are two weeks for subassemblies and purchase lead times are one week for the components. Final assembly P requires one week for 100 units. Include an extra 10-percent scrap allowance in each planned order of G. The minimum order size for H is 200 units. For other items, use lot-for-lot ordering.
a. Develop the product structure tree.
b. Develop the material requirements plan for P, K, G and H.
Learning Design
Demonstrate how to determine the MRP process for the given example.Date Created
2017Format
Video/mp4Duration
14:26 minutes/seconds