Materials requirements calculations - mrp system, Microeconomics

Materials Requirements Calculations - MRP System

MRP is a computer-based 'engine' which carries out calculations in order to determine: 

  • What is needed, and
  • When it is needed.

 

There are two steps in the process of calculating materials requirements. The first step is to identify the release and due dates, clarify with the customer the due date and then backward schedule by offsetting each item in order to determine the necessary release date.

The next phase is to connect the inventory information. First, look at the basic information flows. MRP explodes inputs taking into account the inventory status and sequence of construction of the products and determines the necessary quantities and timing of orders needed to satisfy the planned completions (master production schedule). This is shown diagrammatically in the figure above.

A simple master schedule is shown below.

1848_Materials Requirements Calculations – MRP System.png

In the figure above, it can be seen that the front-end activity is master production scheduling. The master production schedule drives the MRP and CRP process. The master production schedule is a statement of what the company will produce - it is not a forecast (see the simple master production schedule table). It forms the production plan for the organisation. Creating this plan is a detailed activity for most companies and is achieved by consultation between the departments of marketing, production and financial management.

This means that a computerised MIS will have taken the customers' order and automatically scheduled the plant, including manufacturing and vendors, and be able to supply and deliver his/her special order within a two week period. Henry Ford may have produced for stock, ie 'any colour you wish as long as it's black'.

However, in 1922 it took only four days to turn sheet metal into a Model 'A' Ford.

Posted Date: 3/14/2013 6:34:49 AM | Location : United States







Related Discussions:- Materials requirements calculations - mrp system, Assignment Help, Ask Question on Materials requirements calculations - mrp system, Get Answer, Expert's Help, Materials requirements calculations - mrp system Discussions

Write discussion on Materials requirements calculations - mrp system
Your posts are moderated
Related Questions
Money market, labour market, goods market

TYPES OF POLLUTANTS In general the air pollutants can be sub divided into 2 catexampleories: Primary pollutants and Secondary pollutants Primary pollutants These are the poll

an explanation of the meaning of price ceiling

The issue I like to discuss is the ‘US Mortgage Delinquency'. The Mortgage Delinquency may be defined in simple term as the ‘repeated failure to make loan repayment on time'. The d

discuss how economic theory explains the optimum pattern of consumption of an individual consumer


In the city of Gelato the market for ice cream is perfectly competitive. Aggregate demand for ice cream is: D(p) = 1200-25p where p is the price for one cone of ice cream. Al



Mixed Economic System and how can this system solve the economic problem, with example?