mrp planning

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ACC Limited.

Material Requirement Planning

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13.04.23/vmvNot to be quoted or reproduced without written permissionGoods Return to Warehouse

ACC LimitedClassified: INTERNAL USE ONLY

Introduction to MRP

MRP is scientific technique for Planning the ordering & usage of Material at Various level of Production

MRP is Based on the concept of Independent & dependent demands

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Introduction to MRP

Consumption-based MRP determines whether and when a material should be procured.

MRP determines : Which type of material is needed ? At which quantity the material is needed ? When the material is needed ?

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Benefits From MRP

Reduction In Inventory

Improved Cash Flow

Better Financial Planning

Better Customer Service

Regularizes the Production Activity

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Material Requirement Planning

MRP is used for Planning Finish Materials or any Important sub-assembly

MRP is Based on current or future sales. Planned requirement Quantities trigger requirement qty of Raw Materials

In MRP requirement elements are sales order Planned order, Reservations & so on.

Dependent req will be created by BOM explosion

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Lot Size Calculation

Lot size in ACC EX Lot-for-lot order quantity

FX Fixed order quantity

HB Replenish to maximum stock level.

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Lot Sizes

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Re-order Point Procedure

In re-order point MRP type, when the current stock level falls below the pre-set re-order point, stock item must be procured at which quantity will be specifically determined in accordance with the agreed ‘Lot Size’ parameter

Date the material will be available for use is calculated from Current date (date of MRP running) + Purchasing

department processing time + Planned delivery time + Goods receipt processing time

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Re-order Point Concept

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The reorder point calculation formula –

ROPSAP = (D x LT) + S S

D = Average consumption during Replenishment Lead Time

LT = Replenishment Lead Time

SS = Safety Stock

Re-order Point Concept

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IN ACC –FOLLOWING COBINATION OF MRP TYPE AND LOT SIZE

WILL BE USED AS PE BLUE PRINT

SPARES PARTS - MRP TYPE – PD AND LOT SIZE – EX

RAW MATERAIL - MRP TYPE – V1 AND LOT SIZE – FX

CONSUMABLE - MRP TYPE – V1 AND LOT SIZE – HB

DEMAND = REQUIREMENT /DAY X LT REQUIRED TO PROCURE MATERAIL

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The function of material requirement planning is to guarantee material availability on time and in the required qua

ntity. To determine & Eleminate situations of material shortage.

MRP analyzes the (requirements) demand in demand management, if stock is needed, a planned order is created.

A planned order consists of a suggested order quantity, a start and finish date.

In order to procure stock, we must convert the planned order to a process order (in the case of in-house production), or to a purchase requisitions (in the case of external procurement)

MRP : Summary

mrp planning

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