Material Requirements Planning

1
MRP and Related Concepts
TLA (Three Letter Acronym) Definitions
ATP: Available to Promise
BOM: Bill of Materials
DRP: Distribution Requirements Planning
MPS: Master Production Schedule
MRP: Materials Requirements Planning
PAC: Production Activity Control
SOP: Sales and Operations Planning

2
Where Does MRP Fit?
SOP
MPS
MRP
Vendor Order
Managment
PAC
Tactical Capacity Planning
Production, Order Fulfillment, Cushions
Material Quantities and Timing
Supply Chain Management and PDCA
Production Management and PDCA

3
Master Scheduling I
•Controls the timing and quantity of production
for products or product families
•Primary interface point for actual customer
orders
•Coordinates forecasted demand and actual
orders with production activity
•Serves as tool for agreement between
marketing and operations (but at a different
level than SOP)

4
Master Scheduling II
•Feeds more detailed material planning
•Indicates the quantity and timing (i.e., delivery
times) for a product or group of products
•More detailed than SOP
weekly versus monthly
specific products versus “average”
must satisfy the needs of marketing
must be feasible for operations

5
Link between SOP
and MPS
Month: January February March
Output: 200 300 400
Push Mowers 25 25 25 25
Self-propelled 35 40
Riding 12 13
January (weeks) 1 2 3 4
SOP
MPS