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Material Requirement Planning Guide

The document provides an example of material requirements planning (MRP) for steel reinforcement over a 6 week period. It shows the gross requirements, on-hand inventory, net requirements, planned order receipts, and planned order releases to meet the demand while accounting for a 1 week lead time. The example calculates the necessary information for each period to ensure the projected inventory levels can satisfy the gross requirements.

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Muhd Fahmi
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© Attribution Non-Commercial (BY-NC)
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7 views18 pages

Material Requirement Planning Guide

The document provides an example of material requirements planning (MRP) for steel reinforcement over a 6 week period. It shows the gross requirements, on-hand inventory, net requirements, planned order receipts, and planned order releases to meet the demand while accounting for a 1 week lead time. The example calculates the necessary information for each period to ensure the projected inventory levels can satisfy the gross requirements.

Uploaded by

Muhd Fahmi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Material Requirement Planning

Basic term

Prepared by; Muhammad Fahmi Md Idris


Product Structure Tree
Ali producing Bicycle for Amen-Bshop and he expected to deliver 10
units of bicycles in week 1 to Amen-Bshop. The basic components
used to assemble a set of bicycle are 1 unit of handle bars and 1 unit
of frame, assemble with 2 units of wheels.
Bill of Material
Prepare a BoM of each component for each order of
Bicycle component
Total Q’tty
Component Unit Quantity
(Week 1)
Bicycle (B) 1 1 10
Handle Bars (H) 1 1 10
Frame Assembly
(FA) 1 1 10
Frame (F) 1 1 10
Wheels (W) 2 2 20
Time-phase assembly chart

Lead Times
Component
(Minutes)

Bicycle (B) 1

Handle Bars (H) 1

Frame Assembly (FA) 2 1) Refer lead time to draw


time-phase assembly chart
Frame (F) 2

Wheels (W) 3
Time-phase assembly chart

Lead Times
Component
(Minutes)

Bicycle (B) 1

Handle Bars (H) 1

Frame Assembly (FA) 2


2) Start = Right Left
Frame (F) 2

Wheels (W) 3
Time-phase assembly chart

Lead Times
Component
(Minutes)

Bicycle (B) 1

Handle Bars (H) 1

Frame Assembly (FA) 2


3) Draw the line
Frame (F) 2

Wheels (W) 3
Time-phase assembly chart
1 min
H

1 min

B
2 min

FA

Lead Times
Component
(Minutes)

Bicycle (B) 1

Handle Bars (H) 1

Frame Assembly (FA) 2

Frame (F) 2

Wheels (W) 3
Time-phase assembly chart
H

W B

FA

Lead Times F
Component
(Minutes) 1 2 3 4 5 6

Bicycle (B) 1

Handle Bars (H) 1

Frame Assembly (FA) 2 Time-Phased Assembly Chart for B


Frame (F) 2
With 6-Minutes Time Horizon
Wheels (W) 3
MRP Schedules
Gross requirement Scheduled Receipt On-Hand Inventory
Total expected amount Open orders scheduled The expected amount
of material/component to arrive from of inventory that will be
during each time period vendors/suppliers on hand

Item : X Duration
Duration (Days/weeks/months) 1 2 3 4 5 6
Gross Requirement
Scheduled Receipts
On-Hand Inventory
Net Requirement
Planned-Order Receipt
Planned-Order Release

Net requirement Planned-Order Receipt Planned-Order Release


The actual amount The quantity expected Planned amount to
needed in each time to be received by the order in each time
period beginning of the period period
Tutorial MRP
NO. 3
In the MRP planning schedule for steel reinforcement shown in
Table 1 below, indicate the correct net requirement, planned
order receipts and planned order releases to meet the shown
gross requirements.
Lead time = 1 weeks

Item : Steel Reinforcement Week


Week No. 1 2 3 4 5 6
Gross Requirement 75 50 60
Scheduled Receipts 40
On-Hand Inventory
Net Requirement
Planned-Order Receipt
Planned-Order Release
Tutorial MRP
NO. 3
Lead time = 1 weeks

Item : Steel Reinforcement Week


Week No. 1 2 3 4 5 6
Gross Requirement 75 50 70
On-Hand Inventory 40
Net Requirement
Planned-Order Receipt
Planned-Order Release
Tutorial MRP
NO. 3
Lead time = 1 weeks

Item : Steel Reinforcement Week


Week No. 1 2 3 4 5 6
Gross Requirement 75 50 70
On-Hand Inventory 40 - - - - -
Net Requirement 75
Planned-Order Receipt
Planned-Order Release
Tutorial MRP
NO. 3
Lead time = 1 weeks

Item : Steel Reinforcement Week


Week No. 1 2 3 4 5 6
Gross Requirement 75 50 70
On-Hand Inventory 40 - - - - -
Net Requirement 75
Planned-Order Receipt 35
Planned-Order Release
Tutorial MRP
NO. 3
Lead time = 1 weeks

Item : Steel Reinforcement Week


Week No. 1 2 3 4 5 6
Gross Requirement 75 50 70
On-Hand Inventory 40 - - - - -
Net Requirement 75
Planned-Order Receipt 35
Planned-Order Release 35
Tutorial MRP
NO. 3
Lead time = 1 weeks

Item : Steel Reinforcement Week


Week No. 1 2 3 4 5 6
Gross Requirement 75 50 70
On-Hand Inventory 40 - - - - -
Net Requirement 75 50
Planned-Order Receipt 35
Planned-Order Release 35
Tutorial MRP
NO. 3
Lead time = 1 weeks

Item : Steel Reinforcement Week


Week No. 1 2 3 4 5 6
Gross Requirement 75 50 70
On-Hand Inventory 40 - - - - -
Net Requirement 75 50
Planned-Order Receipt 35 50
Planned-Order Release 35
Tutorial MRP
NO. 3
Lead time = 1 weeks

Item : Steel Reinforcement Week


Week No. 1 2 3 4 5 6
Gross Requirement 75 50 70
On-Hand Inventory 40 - - - - -
Net Requirement 75 50
Planned-Order Receipt 35 50
Planned-Order Release 35 50
Tutorial MRP
NO. 3
Lead time = 1 weeks

Item : Steel Reinforcement Week


Week No. 1 2 3 4 5 6
Gross Requirement 75 50 70
On-Hand Inventory 40
Net Requirement 75 50 70
Planned-Order Receipt 35 50 70
Planned-Order Release 35 50 70

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