Chapter 15 Resource Planning.ppt

Chapter 15 Resource Planning Material Requirements Planning Materials requirements planning (MRP) is a means for determining the number of parts, components, and materials needed to produce a product MRP provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced Dependent demand drives MRP It is most valuable in industries where a number of products are made in batches using the same productive equipment. The theme of MRP is “getting the right materials to the right place at the right time”. Demand Patterns Demand Pattern