Chapter-4 Material Requirement Planning

Video 4 of 4

What is MRP?

A technique for determining the quantity and timing of dependent demand items is called Material Requirement Planning

To understand MRP, the following questions are addressed in MRP processing:

  1. What do we want to produce and when(Provide by Master Production schedule)
  2. What components are required to make it(Bill of materials and how many)
  3. How many are already scheduled to be(Inventory status file available in each future period)
  4. How many more we need to obtain for(Different in required and available each future period)

Functions of MRP

  1. Order Planning and Control: When to release orders and for what quantities of materials or components 
  2. Priority Planning and Control: How the expected date of availability compared to the need date for each component.
  3. Provision of a basis for planning capacity requirement and developing a broad business plan.

For Example

Video Source: YouTube

Any query? please comment below or Give a free Test

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: