MRP

 

 MRP process determines the gross requirement, schedule receipt, projected available, net requirement, planned order receipt and planned order release. Gross requirement is the total component need to meet requirement. Schedule receipt is schedule item on order to arrive in future time period. Projected available is how much of each item the company currently available in inventory. Net requirement is the amount of component to produce based on projected available and order quantity. For planned order receipt, MRP program will recommend to planner the release of an order but the order does not release yet. It is amount of inventory ordered after consider remaining stock and the ones that are schedule to arrive later. In short, it is quantity expect to be received at the beginning of a time period in future. Lastly, planned order release is release when order need to be replaced or replenishment order for the item to receive on time with consider lead time.

 

example of MRP report;

WEEK
GROSS         REQUIREMENT
SCHEDULED RECEIPTS
PROJECTED AVAILABLE
NET REQUIREMENT
PLANNED ORDER RECEIPT
PLANNED ORDER RELEASE