Guest Authors: Ignace A.C. Vermaelen and Antoon van Nuffel
Most manufacturing companies today use an Enterprise Resource Planning (ERP) system to manage their companywide operations. All ERP systems include in their functionality some form of Material Requirements Planning (MRP) to manage the production and purchasing areas of the operations. This appendix will focus on the MRP portion of such systems.
The Need for a High-Level Unit of Capacity
Classic MRP tries to plan all dependent and independent demand in detail. To do so it needs thorough definitions regarding lead-times, available capacity, and required capacity. To determine this required capacity, an exhaustive description of ...