Chapter 12a
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Chapter 12a. Resource Requirements Planning: MRP and CRP. Market Research. R&D. Estimated End Item Demands. Branch Warehouses. Forecast Customer Demand. Customer Orders. Needed Production of End Items. Inventory Status of End Items. Lot-Sizing and Safety Stock Policies.

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Chapter 12a

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Chapter 12a

Chapter 12a

Resource Requirements

Planning:

MRP and CRP


Resource requirements planning systems

Market Research

R&D

Estimated

End Item

Demands

Branch Warehouses

Forecast Customer Demand

Customer Orders

Needed

Production

of End

Items

Inventory

Status of

End Items

Lot-Sizing

and

Safety Stock

Policies

Rough-Cut

Capacity

Planning

Trial Master

Production

Schedule

(MPS)

Modifi-

cations to

MPS

Modifi-

cations to

MPS

Material

Requirements

Planning

(MRP)

Capacity

Requirements

Planning

(CRP)

Capacity

Economically

Available?

No

Materials

Available?

Yes

Yes

No

Master

Production

Schedule

(MSP)

Material

Requirements

Plan

Capacity

Requirements

Plan

Purchasing

Planning and

Control

Shop floor

Scheduling

and Control

Resource Requirements Planning Systems


Chapter 12a

A

3B

4C

2D

MRP Example 1

Week


Chapter 12a

A

3B

5C

2C

3D

Note: Aside from the end item,

customers have also ordered 100

units of part B in week 5 and 200

units in week 6 as spares.

MRP Example 2

Week


Mrp example 2 planned order release schedule

MRP Example 2Planned Order Release Schedule

Week

Item **RUSH** 1 2 3 4 5 6

A

B

C

D


The capacity requirements planning process

TRIAL

MASTER

PRODUCTION

SCHEDULE

Change MPS,

Reschedule

Orders to Level

Load

MRP

SCHEDULES

Planned Order

Releases for

All Materials

NO

Determine

Routing for

All Orders,

Work Center

Assignments

Can

Routing Be

Changed to

Improve

Capacity?

YES

Convert Lots of

Materials into

Labor and/or

Machine Load

at Work Centers

Labor and/or

Machine

Load

Schedules

NO

Can

Capacity Be

Economically

Changed?

Is

Capacity

Available?

NO

YES

YES

Plan Overtime,

Standby

Machines,

Subcontracting,

etc.

Routing Plans,

Overtime and

Subcontracting

Plans

Firm Up the

MPS

The Capacity Requirements Planning Process

Start


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