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Material resource planning (MRP) | Free template

Material resource planning (MRP) is a free template to schedule production starts, purchase needs and purchase dates in the case of products with a dependent demand.

Depending demand means that the demand for one product affect the demand for the components included in this end product, which is to say that there is a connection between the products. With dependent demand means that the demand for a product incorporated into a final product depends on the demand for this final product.

Material resource planning (MRP) is a method to plan the production starts and the purchase dates from a master production schedule for finished products. The material resource planning uses a bill of material to determine which components are included in the final product or main product. When you know the planned production volume for a final product you can by the bill of material and the lead time for each product determine the time when production should start or when purchase shall be made for individual products.

Material resource planning requires the following:
1. a master production schedule for finished products which shows the quantity and the time when the final products must be completed.
2. A bill of material for finished products which show the components and how many of each component that is required to produce one unit of the final product.
3. Outstanding purchase orders which show how many units of each product is expected to be delivered to the company.
4. Lead times for the time it takes to produce or purchase a product.

This template is not dynamic, but is based on a fixed bill of material with links at various levels between the products included in the final product. If you want to change the structure of a final product you need to change the order of the products and the gross requirement calculations. The gross requirement calculation is based on the products where it is known which components that is included and this is a simple calculation, however, the calculation is static and do not adapt automatically when you change the structure of the bill of materials. Important to remember is that you must calculate the gross requirement first for the products at the higher level before you start calculating the gross requirement for products at lower levels.

The bill of material shows the level at which each product is, where 0 is the highest level and the level of the main product or final product. For each product, you then enter the number of units included in the final top level product in which the component is included. If product D is included in product B is you have to enter the number of units of product D that is included in product B.

For each main product, you must enter the gross requirement, for all other products the gross requirement are calculated, depending on which products this product is included in. For each product, enter the lead time that is the time it takes to manufacture or deliver the product. You can specify a desired safety stock for each product, meaning that this number must always be in inventory. You can specify a lot size that is the smallest regular size that can be manufactured or purchased, for example, if the lot size is 100 but the need only 70, then 100 will be produced or purchased. You can also specify a minimum quantity that is similar to lot size, which is, if you specify a minimum quantity of 100 and need only 70 then 100 will be produced or purchased. For each product that is not a final product, you can specify when and how many units that are expected to be delivered because of previous purchase orders.

You can use this template to make a material resource planning for a final product. If you have many final products, it is recommended that you use software for production planning, such as ERP software, MPS system or MRP software.
Updated: 01/01/2015 | Created by All-templates.biz

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Tags: production planning resource planning capacity planning operations management