Material Requirements
Planning (MRP)
and ERP 14
© 2014 Pearson Education, Inc. 14 - 1
, Learning Objectives
When you complete this chapter you
should be able to:
1. Develop a product structure
2. Build a gross requirements plan
3. Build a net requirements plan
4. Determine lot sizes for lot-for-lot, EOQ, and
POQ
5. Describe MRP II
6. Describe closed-loop MRP
7. Describe ERP
© 2014 Pearson Education, Inc. 14 - 2
, Dependent Demand
For any product for which a schedule
can be established, dependent
demand techniques should be used
© 2014 Pearson Education, Inc. 14 - 3
, Dependent Demand
Benefits of MRP
1. Better response to customer orders
2. Faster response to market changes
3. Improved utilization of facilities and
labor
4. Reduced inventory levels
© 2014 Pearson Education, Inc. 14 - 4
Planning (MRP)
and ERP 14
© 2014 Pearson Education, Inc. 14 - 1
, Learning Objectives
When you complete this chapter you
should be able to:
1. Develop a product structure
2. Build a gross requirements plan
3. Build a net requirements plan
4. Determine lot sizes for lot-for-lot, EOQ, and
POQ
5. Describe MRP II
6. Describe closed-loop MRP
7. Describe ERP
© 2014 Pearson Education, Inc. 14 - 2
, Dependent Demand
For any product for which a schedule
can be established, dependent
demand techniques should be used
© 2014 Pearson Education, Inc. 14 - 3
, Dependent Demand
Benefits of MRP
1. Better response to customer orders
2. Faster response to market changes
3. Improved utilization of facilities and
labor
4. Reduced inventory levels
© 2014 Pearson Education, Inc. 14 - 4