LEARNING OBJECTIVES
    • After this lecture, students will be able to 
        1. Describe the inputs, outputs, and nature of MRP processing.
        2. Explain bill of materials
        3. Explain time-phased product structure
        4. Describe differences between MRP and ERP
    MIS 373: Basic Operations Management                                             2
                                                                   MRP
    • Material requirements planning (MRP):
        • A computer-based information system that translates 
         master schedule requirements for end items into time-
         phased requirements for subassemblies, components, 
         and raw materials.
        • The MRP is designed to answer three questions:
           1. What is needed?
           2. How much is needed?
           3. When is it needed?
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                                                   MRP OVERVIEW
 How much and 
 when finished 
 product is desired
 Composition of a 
 finished products
 How much 
 inventory is on 
 hand or on order
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                                               MRP INPUTS
   • MRP Inputs
       • Master schedule
          • How much and when finished product is desired
       • Bill of Materials (BOM)
          • Composition of a finished products
       • Inventory Records
          • How much inventory is on hand or on order
   MIS 373: Basic Operations Management                             5
                                                        MRP INPUTS:
                                         MASTER SCHEDULE
    • Master schedule: 
        • States: 
             • Which end items are to be produced
             • When these are needed
             • In what quantities (customer orders, 
               forecasts, order from warehouses to 
               build up seasonal inventories).
                                         Weekly Quantity
             Item X       11    12    13     14    15    16    17     18
             Quantity                       100                      150
    MIS 373: Basic Operations Management                                           6