Material Requirement Planning

(MRP)
Modul ke:

MRP inputs and outputs, MRP Processes, MRP matrix , Lot

sizing in MRP systems.

Fakultas
Pascasarjana Zulfa Fitri Ikatrinasari, MT., Dr. / Euis Nina S. Y., ST, MT

Program Studi
Magister Teknik
Industri
 Reference

Ch15
Russel,R.&Taylor,B.W.(2010).Operation
Management,7thEd.JohnWiley&Son.

Copyright2009JohnWiley&Sons,Inc.
 Resource
Planningfor
Manufacturing

Copyright2009JohnWiley&Sons,Inc.
 Material Requirements Planning (MRP)

Computerizedinventorycontroland
productionplanningsystem
WhentouseMRP?
Dependentdemanditems
Discretedemanditems
Complexproducts
Jobshopproduction
Assembletoorderenvironments

Copyright2009JohnWiley&Sons,Inc.
 Demand Characteristics
Independentdemand Dependentdemand

100x1=
100tabletops

100tables 100x4=400tablelegs

Continuousdemand
400
Discretedemand
400
300
No.oftables

300
200 No.oftables
200
100
100

1 2 3 4 5
Week MTWThFMTWThF

Copyright2009JohnWiley&Sons,Inc.
 Material Requirements Planning
Master
production
schedule

Product Material Item

structure requirements master
file planning file

Planned
order
releases

Work Purchase Rescheduling

orders orders notices

Copyright2009JohnWiley&Sons,Inc.
 MRP Inputs and Outputs

Inputs Outputs
Masterproduction Plannedorder
schedule releases
Productstructure Workorders
file Purchaseorders
Itemmasterfile Rescheduling
notices

Copyright2009JohnWiley&Sons,Inc.
 Master Production Schedule
DrivesMRPprocesswithascheduleoffinished
products
Quantitiesrepresentproductionnotdemand
Quantitiesmayconsistofacombinationof
customerordersanddemandforecasts
Quantitiesrepresentwhatneedstobe
produced,notwhatcanbeproduced
Quantitiesrepresentenditemsthatmayor
maynotbefinishedproducts

Copyright2009JohnWiley&Sons,Inc.
 Master Production Schedule (cont.)

PERIOD
MPSITEM 1 2 3 4 5

PencilCase 125 125 125 125 125

Clipboard 85 95 120 100 100
Lapboard 75 120 47 20 17
Lapdesk 0 50 0 50 0

Copyright2009JohnWiley&Sons,Inc.
 Product Structure

Clipboard

Topclip(1) Bottomclip(1)

Pivot(1) Spring(1)

Rivets(2)
Finishedclipboard Pressboard(1)

Copyright2009JohnWiley&Sons,Inc.
 Product Structure Tree

Clipboard Level0

Pressboard ClipAssy Rivets

(1) (1) (2) Level1

TopClip BottomClip(1) Pivot Spring

(1) (1) (1) Level2

Copyright2009JohnWiley&Sons,Inc.
 Multilevel Indented BOM

LEVEL ITEM UNITOFMEASURE QUANTITY

0 Clipboard ea 1
1 ClipAssembly ea 1
2 TopClip ea 1
2 BottomClip ea 1
2 Pivot ea 1
2 Spring ea 1
1 Rivet ea 2
1 PressBoard ea 1

Copyright2009JohnWiley&Sons,Inc.
 Specialized BOMs
Phantom bills
Transient subassemblies
Never stocked
Immediately consumed in next stage
K-bills
Group small, loose parts under pseudo-item
number
Reduces paperwork, processing time, and file
space

Copyright2009JohnWiley&Sons,Inc.
 Specialized BOMs (cont.)

Modular bills
Product assembled from major subassemblies and
customer options
Modular bill kept for each major subassembly
Simplifies forecasting and planning
X10 automobile example
3 x 8 x 3 x 8 x 4 = 2,304 configurations
3 + 8 + 3 + 8 + 4 = 26 modular bills

Copyright2009JohnWiley&Sons,Inc.
 Modular BOMs

X10
Automobile






Engines Exteriorcolor Interior Interiorcolor Body
(1of3) (1of8) (1of3) (1of8) (1of4)

4Cylinder(.40) Brightred(.10) Leather(.20) Grey(.10) Sportscoupe(.20)

6Cylinder(.50) Whitelinen(.10) Tweed(.40) Lightblue(.10) Twodoor(.20)
8Cylinder(.10) Sulphuryellow(.10) Plush(.40) Rose(.10) Fourdoor(.30)
Neonorange(.10) Offwhite(.20) Stationwagon(.30)
Metallicblue(.10) Coolgreen(.10)
Emeraldgreen(.10) Black(.20)
Jetblack(.20) Brown(.10)
Champagne(.20) B/Wchecked(.10)

Copyright2009JohnWiley&Sons,Inc.
 Time-phased Bills
anassemblychartshownagainstatimescale

Forwardscheduling:startattodaysdateandscheduleforwardtodeterminethe
earliestdatethejobcanbefinished.Ifeachitemtakesoneperiodtocomplete,the
clipboardscanbefinishedinthreeperiods
Backwardscheduling:startattheduedateandschedulebackwardstodetermine
whentobeginwork.Ifanorderforclipboardsisduebyperiodthree,weshouldstart
productionnow
Copyright2009JohnWiley&Sons,Inc.
 Item Master File

DESCRIPTION INVENTORYPOLICY
Item Pressboard Leadtime 1
Itemno. 7341 Annualdemand 5000
Itemtype Purch Holdingcost 1
Product/salesclass Comp Ordering/setupcost 50
Valueclass B Safetystock 0
Buyer/planner RSR Reorderpoint 39
Vendor/drawing 07142 EOQ 316
Phantomcode N Minimumorderqty 100
Unitprice/cost 1.25 Maximumorderqty 500
Pegging Y Multipleorderqty 1
LLC 1 Policycode 3

Copyright2009JohnWiley&Sons,Inc.
 Item Master File (cont.)

PHYSICALINVENTORY USAGE/SALES

Onhand 150 YTDusage/sales 1100

Location W142 MTDusage/sales 75

Onorder 100 YTDreceipts 1200
Allocated
75 MTDreceipts 0
Cycle
3 Lastreceipt 8/25
Lastcount
9/5 Lastissue 10/5
Difference
2

CODES
CODES

Costacct. 00754
Routing 00326
Engr 07142

Copyright2009JohnWiley&Sons,Inc.
 MRP Processes

Explodingthebillof Netting
material processofsubtractingon
Nettingoutinventory handquantitiesand
scheduledreceiptsfrom
Lotsizing grossrequirementsto
Timephasing producenetrequirements
requirements Lotsizing
determiningthequantities
inwhichitemsareusually
madeorpurchased

Copyright2009JohnWiley&Sons,Inc.
 MRP Matrix

Copyright2009JohnWiley&Sons,Inc.
 MRP: Example

MasterProductionSchedule
1 2 3 4 5

Clipboard 85 95 120 100 100

Lapdesk 0 60 0 60 0

ItemMasterFile
CLIPBOARD LAPDESK PRESSBOARD
Onhand 25 20 150
Onorder 175(Period1) 0 0
(schreceipt)
LLC 0 0 1
Lotsize L4L Mult50 Min100
Leadtime 1 1 1

Copyright2009JohnWiley&Sons,Inc.
 MRP: Example (cont.)
ProductStructureRecord

Clipboard Level0

Pressboard ClipAssy Rivets

(1) (1) (2) Level1

Lapdesk Level0

Pressboard Trim Beanbag Glue

(2) (3) (1) (4oz) Level1

Copyright2009JohnWiley&Sons,Inc.
 MRP: Example (cont.)

ITEM:CLIPBOARD LLC:0 PERIOD

LOTSIZE:L4L LT:1 1 2 3 4 5

GrossRequirements 85 95 120 100 100

ScheduledReceipts 175
ProjectedonHand 25
NetRequirements
PlannedOrderReceipts
PlannedOrderReleases

Copyright2009JohnWiley&Sons,Inc.
 MRP: Example (cont.)

ITEM:CLIPBOARD LLC:0 PERIOD

LOTSIZE:L4L LT:1 1 2 3 4 5

GrossRequirements 85 95 120 100 100

ScheduledReceipts 175
ProjectedonHand 25 115
NetRequirements 0
PlannedOrderReceipts
PlannedOrderReleases

(25+175)=200unitsavailable
(20085)=115onhandattheendofPeriod1

Copyright2009JohnWiley&Sons,Inc.
 MRP: Example (cont.)

ITEM:CLIPBOARD LLC:0 PERIOD

LOTSIZE:L4L LT:1 1 2 3 4 5

GrossRequirements 85 95 120 100 100

ScheduledReceipts 175
ProjectedonHand 25 115 20
NetRequirements 0 0
PlannedOrderReceipts
PlannedOrderReleases

115unitsavailable
(11585)=20onhandattheendofPeriod2

Copyright2009JohnWiley&Sons,Inc.
 MRP: Example (cont.)

ITEM:CLIPBOARD LLC:0 PERIOD

LOTSIZE:L4L LT:1 1 2 3 4 5

GrossRequirements 85 95 120 100 100

ScheduledReceipts 175
ProjectedonHand 25 115 20 0
NetRequirements 0 0 100
PlannedOrderReceipts 100
PlannedOrderReleases 100

20unitsavailable
(20120)=100100additionalClipboardsarerequired
OrdermustbeplacedinPeriod2tobereceivedinPeriod3

Copyright2009JohnWiley&Sons,Inc.
 MRP: Example (cont.)

ITEM:CLIPBOARD LLC:0 PERIOD

LOTSIZE:L4L LT:1 1 2 3 4 5

GrossRequirements 85 95 120 100 100

ScheduledReceipts 175
ProjectedonHand 25 115 20 0 0 0
NetRequirements 0 0 100 100 100
PlannedOrderReceipts 100 100 100
PlannedOrderReleases 100 100 100

FollowingthesamelogicGrossRequirementsinPeriods4and5
developNetRequirements,PlannedOrderReceipts,andPlannedOrder
Releases

Copyright2009JohnWiley&Sons,Inc.
 MRP: Example (cont.)

ITEM:LAPDESK LLC:0 PERIOD

LOTSIZE:MULT50 LT:1 1 2 3 4 5

GrossRequirements 0 60 0 60 0
ScheduledReceipts
ProjectedonHand 20
NetRequirements
PlannedOrderReceipts
PlannedOrderReleases

Copyright2009JohnWiley&Sons,Inc.
 MRP: Example (cont.)

ITEM:LAPDESK LLC:0 PERIOD

LOTSIZE:MULT50 LT:1 1 2 3 4 5

GrossRequirements 0 60 0 60 0
ScheduledReceipts
ProjectedonHand 20 20 10 10 0 0
NetRequirements 0 40 50
PlannedOrderReceipts 50 50
PlannedOrderReleases 50 50

Followingthesamelogic,theLapdeskMRPmatrixis
completedasshown

Copyright2009JohnWiley&Sons,Inc.
 MRP: Example (cont.)
ITEM:CLIPBOARD LLC:0 PERIOD
LOTSIZE:L4L LT:1 1 2 3 4 5
PlannedOrderReleases 100 100 100
ITEM:LAPDESK LLC:0 PERIOD
LOTSIZE:MULT50 LT:1 1 2 3 4 5

PlannedOrderReleases 50 50
ITEM:PRESSBOARD LLC:0 PERIOD
LOTSIZE:MIN100 LT:1 1 2 3 4 5
GrossRequirements
ScheduledReceipts
ProjectedonHand 150
NetRequirements
PlannedOrderReceipts
PlannedOrderReleases

Copyright2009JohnWiley&Sons,Inc.
 MRP: Example (cont.)
ITEM:CLIPBOARD LLC:0 PERIOD
LOTSIZE:L4L LT:1 1 2 3 4 5
PlannedOrderReleases 100 100 100
ITEM:LAPDESK LLC:0 x1
PERIOD x1 x1
LOTSIZE:MULT50 LT:1 1 2 3 4 5
PlannedOrderReleases 50 50
ITEM:PRESSBOARD LLC:0 x2 x2 PERIOD
LOTSIZE:MIN100 LT:1 1 2 3 4 5
GrossRequirements 100 100 200 100 0
ScheduledReceipts
ProjectedonHand 150
NetRequirements
PlannedOrderReceipts
PlannedOrderReleases

Copyright2009JohnWiley&Sons,Inc.
 MRP: Example (cont.)
ITEM:CLIPBOARD LLC:0 PERIOD
LOTSIZE:L4L LT:1 1 2 3 4 5
PlannedOrderReleases 100 100 100
ITEM:LAPDESK LLC:0 PERIOD
LOTSIZE:MULT50 LT:1 1 2 3 4 5
PlannedOrderReleases 50 50
ITEM:PRESSBOARD LLC:0 PERIOD
LOTSIZE:MIN100 LT:1 1 2 3 4 5
GrossRequirements 100 100 200 100 0
ScheduledReceipts
ProjectedonHand 150 50 50 0 0 0
NetRequirements 50 150 100
PlannedOrderReceipts 100 150 100
PlannedOrderReleases 100 150 100

Copyright2009JohnWiley&Sons,Inc.
 MRP: Example (cont.)

PlannedOrderReport
PERIOD
ITEM 1 2 3 4 5

Clipboard 100 100 100

Lapdesk 50 50
Pressboard 100 150 100

Copyright2009JohnWiley&Sons,Inc.
 Lot Sizing in MRP Systems

Lotforlotorderingpolicy
Fixedsizelotorderingpolicy
Minimumorderquantities
Maximumorderquantities
Multipleorderquantities
Economicorderquantity
Periodicorderquantity

Copyright2009JohnWiley&Sons,Inc.
 Advanced Lot Sizing Rules: L4L

TotalcostofL4L=(4X$60)+(0X$1)=$240
Copyright2009JohnWiley&Sons,Inc.
 Advanced Lot Sizing Rules: EOQ

2(30)(60
EO Q = = 60 minimumorderquantity
1

TotalcostofEOQ=(2X$60)+[(10+50+40)X$1)]=$220

Copyright2009JohnWiley&Sons,Inc.
 Advanced Lot Sizing Rules: POQ
POQ = Q / d = 60 / 30 = 2 periodsworthofrequirements

TotalcostofPOQ=(2X$60)+[(20+40)X$1]=$180

Copyright2009JohnWiley&Sons,Inc.
 Planned Order Report
Item #2740 Date 92505
Onhand 100 Leadtime 2weeks
Onorder 200 Lotsize 200
Allocated 50 Safetystock 50
SCHEDULED PROJECTED
DATE ORDERNO. GROSSREQS. RECEIPTS ONHAND ACTION
50
926 AL4416 25 25
930 AL4174 25 0
1001 GR6470 50 50
1008 SR7542 200 150 ExpediteSR1001
1010 CO4471 75 75
1015 GR6471 50 25
1023 GR6471 25 0
1027 GR6473 50 50 ReleasePO1013
Key: AL =allocated WO =workorder
CO =customerorder SR =scheduledreceipt
PO =purchaseorder GR =grossrequirement

Copyright2009JohnWiley&Sons,Inc.
 MRP Action Report

Currentdate92508

ITEM DATE ORDERNO. QTY. ACTION
#2740 1008 7542 200 Expedite SR 1001
#3616 1009 Moveforward PO 1007
#2412 1010 Moveforward PO 1005
#3427 1015 Movebackward PO 1025
#2516 1020 7648 100 Deexpedite SR 1030
#2740 1027 200 Release PO 1013
#3666 1031 50 Release WO 1024

Copyright2009JohnWiley&Sons,Inc.
Terima Kasih
Zulfa Fitri Ikatrinasari, MT., Dr.
Euis Nina S. Y., ST, MT