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Major elements to MRP PDF Print E-mail
Written by Cecilia Chee, Singapore   
Tuesday, 04 October 2011 16:12


There are 5 major elements to  MRP (MRP)


  1. Strategic Inventory Positioning – literally, where in the Bill of Material structure, or where in the supply chain, should we hold inventory to provide the maximum benefit to performance? This is a crucial first step for  MRP.
  2. Buffer Profiles and Buffer Level Determination – establishing the “profiles” for the Buffer Stock, such that parts with high variability and high volume (for example) will have a different profile than parts with high volume and low variability, or parts with low volume and high variability, etc; then, actually setting the inventory levels.
  3. Dynamic Buffers – Over time, many realities might change from the initial starting point for the buffer – demand and demand patterns change, the degree of variability changes, seasonality issues might emerge, there might be decisions to ramp-up or phase-out a product … Dynamic Buffers respond to these.
  4. Demand Driven Planning – Parts are designated as Replenishment or Replenishment Override or Min-Max or non-buffered … then the MRP-type planning explosions kick-in, with decoupling at replenishment points.
  5. Highly Visible and Collaborative Execution – Execution is one of the Achilles heels of the ERP/MRP world; the “P” in MRP stands for Planning, and MRP was never intended to be an execution tool. DDMRP Demand Driven MRP provides strong execution support.


Last Updated on Wednesday, 05 October 2011 13:33
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