Chapter 4: Material Requirement Planning (MRP)

Material Requirement Planning (MRP)

Ø  MRP is the system used to avoid missing part.

Ø  2 type of demand:

-          Independent Demand: not related to the demand for any other product.

-          Dependent Demand: Directly related to the demand for higher – level assemblies or product, it can be calculated. (Depend on demand. E.x: Demand ↑, component ↑)

Ø  Objectives of MRP:

-          To determine the requirement.

-          To keep priorities current.