Basics of Supply Chain Management

Chapter 7

Material Requirements Planning

7.1 Introduction

Finished products or end items are produced or assembled according to the master production schedule (MPS). But these end items will be made or assembled from components that must be available in the right quantities and at the right time for meeting the requirement of the MPS. A product cannot be built and shipped on time unless components are available on time.

7.2 Material Requirements Planning

Material requirements planning prepares the schedule of the component requirements at each level of the assembly and calculates the time when these components will be needed based on their respective lead times for procurement. End items are independent demand items; their demand occurs independent ...