Framework

MRP logic: gross requirements to order releases

The question it answers

Once the master production schedule is set, how many components at each level should an operations manager order or make, and when, to avoid shortages?

Origin
Slack et al. (2022)
Diagram type
Process by phase
Level of analysis
Firm
Topics
Supply chain & operations
Delivery lorry pulling a chain of linked glass boxes, icon for supply chain

Diagram

MRP logic: gross requirements to order releases

  1. Inputs
  2. Bill of materials
  3. MPS
  4. Inventory records
  5. Calculate level by level
  6. Gross requirements
  7. Net off projected stock and scheduled receipts to get net requirements
  8. Round to lot size
  9. Offset by lead time into order releases
  10. Repeat at the next BOM level

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Slack, N., Brandon-Jones, A. and Burgess, N. (2022) Operations Management (10th edn). Harlow: Pearson.No DOISource page