The MRP.lng Model Material Requirements Planning View the model Download the model Material Requirements Planning, or MRP, is used to generate production schedules for the manufacture of complex products. MRP uses the demand schedule for a finished product, and all the various subcomponents that go into the finished product to work backwards and develop a detailed just-in-time production schedule, which meets the demand schedule. MRP's main focus is finding a feasible just-in-time production schedule to meet demand. MRP does not, however, attempt to optimize the production schedule to minimize total production costs. In many cases, the problems solved by MRP are so complex optimization would be prohibitive. Suppose you are a manufacturer of human powered vehicles. You have a given schedule of demands for finished products over time. You need to know when and how many of each component, subcomponent, etc. is needed to meet demand. Your final products are as follows:
The subcomponents are as follows:
The production lines and parts assembled on them are as follows:
Keywords: Demand Backlog | Forecasting | Inventory | Material Requirements Planning | Product Management | Production | Reorder Point | Uncertainty |