ERPDemand

Mgmt.

DPR105: Intro to Management Systems

Instructor: Tom Matys, M.S.

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MRP: Material Requirements Planning

How much, from who, and when.

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MRP: Computerized ordering of raw materials.

MRP: Material Requirements Planning

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MRP: Computerized automated ordering of raw materials.

MRP: Material Requirements Planning

Output:

Purchase Requisitions and/or Purchase Orders

AUTOMATED ORDERING OF RAW MATERIALS

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Sales Forecast (M/S)SOP (Sales and Operations Plan) (Prod)MPS (Master Production Schedule) (Prod)

MRP: Material Requirements Planning

MRP is dependent upon:

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Sales Forecast (M/S)

MRP: Material Requirements Planning

• Sales HistoryWhat did we sell last year?

• GrowthHow much will our business grow? (2%-3%)

• PromotionsWhat months can we expect increased demand? 6

SOP (Sales & Operations Plan) (PROD)

MRP: Material Requirements Planning

• Current Inventory Balance How much do we have now?

• CapacityHow much resources do we have?

• Utilization RateAre we operating at a safe utilization rate?

AGGREGATE / Rough-Cut Plan

Warning!

Warning!

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MPS (Master Production Schedule) (PROD)

MRP: Material Requirements Planning

Needs the Sales & Operations Plan as Input

MPS is DISAGGREGATED / More Specific• Creates a daily or weekly plan – a more specific schedule• It will produce a Planned Order and/or a Production Order

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Demand Management Flow

Sales Forecast

13) ______

4)(______________________)

PROCESS NAMES

• SOP(?)

• SALES

FORECAST

• MRP(?)

• MPS(?)

1)______

2)(____________________)

5) ______

6) (____________________)

7)

8)

9)

10)

11)

12)

13)

14)

15)

16)

18)

19)

17)

INPUTS/OUTPUTS

• Sales History

• Lead Time

• Production Order

• Utilization Rate

• Capacity

• Promotions

• Purchase Requisition

• Purchase Order

• BOM

• Growth

• Lot-Sizing

• Weekly/Daily Demand

• Inventory Balance9

QUESTIONS?

?

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