Materials Requirement Planning

The Materials Requirement Planning (MRP) is the function which includes the stock control, and a bill of a material processed the simple scheduling. In an organization the MRP is used to reduce the stock levels and to plan the Manufacturing, Purchasing and delivery schedules. It can be any products from any manufacturing companies; they always face a similar problem that the customer’s needs the product availability in shorter time and here it requires the planning to manufacture the product on time. We should first plan what is the current demand and future demand of the customer according to that we should plan the types and materials we required and what would be the quality and quantity we should produce. Or else the company will lose the money. Normally all the companies are using computer nowadays to operate the management, MRP system is an computer application to operate the management. It is used to find out the current requirement of production after checking the stock in hand, planned receipts and planned released orders. Since computers are used in all kinds business which includes Operation Management. Let’s refer the “Principles of Material Requirement Planning” and “Targets of Material Requirement Planning”.

Principles of Material Requirement Planning: the basic Principle of the Material Requirement Planning is that it helps in reversing the scheduled process which estimates the requirements of the material from the beginning of the date of requirement. And also it helps in estimating the date of the receipt which keeps the visibility of working and the time spent. In additional it also estimates the date of order and delivery time. As per the demand of the previous product the MRP will destroy the old product into components and re-build it. These systems will co-ordinate the orders both internal and external, external orders are meant for purchasing order and the internal is nothing but the work. The MRP will describe the current level of stocks for each product and the quantities required.

Targets of Material Requirement Planning:  as we all plan our work and labor requirement, and also we set a target to achieve our goal. Same like that the Target of Material Planning is to provide the accurate amount of supply of the product and demand of the stock whenever it’s required. The Main Target of the MRP is the best customer service and the availability of the product on time, and the parts which help the companies to deliver the product on time.

Questions:

• What is the use of Material Requirement planning?
• What are the two different things in MRP and define that?