Shoaib Awan

510
MATERIAL REQUIREMENT
PLANNING (MRP)
 WHAT IS MRP

• Computerized Inventory Control

• Production Planning System
• Management Information System
• Manufacturing Control System
 CONTRIBUTOR MRP

• Joseph Orlicky 1964

• George Plossl
• Oliver Wight
• American Production and Inventory Control Society
 WHAT CAN MRP DO?
• Reduce Inventory Levels
• Improve Shipping Performance
• Improve Customer Service
• Improve Productivity
• Reduce Purchasing Cost
• Improve Production Schedules
• Reduce Manufacturing Cost
• Reduce Lead Times
• Less Scrap and Rework
• Higher Production Quality
 THREE BASIC STEPS OF MRP

• Identifying Requirements
• Running MRP – Creating the Suggestions
• Firming the Suggestions
Where x' is local inventory (the state), z the order size (the control), d is local demand, k
represents fixed order costs, c variable order costs, h local inventory holding costs. δ() is the
Heaviside function. Changing the dynamics of the problem leads to a multi-item analogue of the
dynamic lot-size mode