Material requirements planning (MRP)
systems is a prominent approach to manage the material
flow and components on the factory floor. MRP
technique- is used to explode bills of material, to calculate
net material requirements and for production planning.
The master production schedule and bill of materials
indicates the materials to be demanded, order scheduling,
cycle time production and supplier lead times then these
all factors jointly determine when orders should be
placed. It is a time phased priority-planning technique that
calculates material requirements and schedules supply to
meet demand across all products and parts in one or more
plants and used to optimize the inventory. It controls the
system that attempts to keep adequate inventory levels to
assure that required materials are available when needed.
This method is used for a automobile servicing plant for
procuring spare parts to reduce the servicing time of a
vehicle. The demand is forecasted for the materials based
on actual demand and this gives the expected levels of
goods or services. Based on the forecasted demand
material requirement planning is done and orders are
released to purchase materials and the materials are
stocked. The objective of this work is to reduce the idle
time and cost of materials and by procuring materials in
right time.