APICS Exam Warehouse

Using MRP Outputs

MRP Netting

· Used in MRP

· Used in TPOP

· Used in DRP Netting

MRP Extensions

· Time-phased order point (TPOP)

o Advantages

1. Keeps open-order due dates valid

2. Furnishes capacity planning system with the item’s planned orders

3. Plans gross requirements for the item’s components

· Distribution requirements planning

o Determines need for replenishments at branch warehouses

o Used time phased order approach

MRP Outputs

· Exception Report

· Action Report

· Pegging Report

Changes Affecting MRP Plan

· Engineering changes

· Excess Scrap

· Inventory corrections

· Lot Size changes

· Customer revision of orders

· Supplier/production issues

· MPS revisions

Replanning

· Action report may suggest to:

o Expedite order

o Release a planned order

o Cancel firm planned order/scheduled receipt

o Delay firm planned order/scheduled receipt

o Look into firm planned order/scheduled receipt

Pegging

· Allow users to trace item’s gross requirements to parent sources

· Best to go up one level and use single-level pegging to resolve demand-supply mismatches…try to resolve them as low in the product structure as possible

· Full Pegging

o Allows user to link item demand all the way back to the MPS

o Useful for engineer-to-order, make-to-order, and products having few common components

o Modifying MPS is last resort

· Where used list

o Displays quantity of every parent item to produce one unit of a component

Firm Planned Orders

· Overrides MRP logic when an order is put in firm planned status by user

Planning Parameters

· Lot Size

· Lead Time: largest componenet of manufacturing LT is queue time

· Safety Stock

· Safety Lead Time

Closing the Loop

· Who furnishes information?

· Who uses information?