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LAB 4

Material Requirement Planning Problems Solved in Excel

Template
Abstract:
The explanation and introduction of Material requirement planning is one of the core point of
this lab along with the problems related to material requirement planning which have been
solved in Excel template in this particular lab. This lab also explains the decision taken based
on the results to plan the material acquirements accordingly.
Introduction:
Material requirements planning (MRP) is a production planning, scheduling,
and inventory control system used to manage manufacturing processes. Most MRP systems
are software-based, while it is possible to conduct MRP by hand as well.
MRP can be applied both to items that are purchased from outside suppliers and to sub-
assemblies, produced internally, that are components of more complex items.
MRP calculates and maintains an optimum manufacturing plan based on master production
schedules, sales forecasts, inventory status, open orders and bills of material. If properly
implemented, it will reduce cash flow and increase profitability. MRP will provide you with the
ability to be pro-active rather than re-active in the management of your inventory levels and
material flow.
The consultants at Inventory Solutions can provide an un-biased review of your operations
and make suggestions on how you can improve your process. If you want the productivity
improvements that MRP can deliver.
MRP will plan production so that the right materials are at the right place at the right time.
MRP determines the latest possible time to product goods, buy materials and add
manufacturing value. Proper Material Requirements Planning can keep cash in the firm and
still fulfill all production demands. It is the single most powerful tool in guiding inventory
planning, purchase management and production control. MRP is easy to operate and adds
dramatically to profits.
An MRP system is intended to simultaneously meet three objectives:
Ensure materials are available for production and products are available for delivery to
customers.
Maintain the lowest possible material and product levels in store
Plan manufacturing activities, delivery schedules and purchasing activities.
Problem Statement:
Solve three different problems related to MRP on Excel template.
Procedure:
1. Open the MRP template in Excel.
2. Change the respective values in the template according to the problem.
3. The values once inserted will generate the results.
4. It becomes easy to observe the results and take respective actions.
5. It is easy to reset the data in its original form.
Problems Solved in Template:
The problem solved in Excel template are given below with its snap shots.
Problem 1:

Problem 2:

Problem 3:
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LAB 4

Problem 4:

Problem 5:

Conclusion:
Templates in Excel makes easy to solve the problems as values have to be inserted in it. The
only problem sometimes arises is about the graph limitation as we could see in few of the
problems solved. This depends from template to template and type of problem to be solved.