Material Requirements Planning System Research Articles

Improving MRP Precision in Engineering and Manufacturing Sectors

This study evaluates the effectiveness of Material Requirement Planning (MRP) in the engineering and manufacturing sector through a five-month empirical investigation focused on production processes. Utilizing a combination of literature review, interviews, and direct observation, the research aimed to compare theoretical MRP calculations with actual raw material usage. Results highlighted significant discrepancies between projected and actual figures, indicating potential inaccuracies in current MRP applications. These findings underscore the need for refining MRP systems to enhance forecasting precision and inventory management, suggesting that integrating real-time data and improving algorithmic methodologies could bridge the existing gap between theory and practice in industrial manufacturing. Highlights: Essential Raw Material Management: Key for timely production and meeting customer needs. MRP Efficiency: PT. Weiss Tech uses MRP for precise raw material calculations. Accuracy Assessment: Research evaluates MRP accuracy through literature, interviews, and observation. Keywords: Raw Materials, MRP, Inventory Control

IMPROVING MATERIAL REQUIREMENTS PLANNING THROUGH WEB-BASED: A CASE STUDY THAILAND SMEs

In the small business industry, effective cost control is of paramount importance. A well-functioning Material Requirements Planning (MRP) process plays a vital role in enabling businesses to manage their costs efficiently. This research paper explores the improvement of MRP in the context of small businesses in Thailand through the implementation of a web-based application. The objective was to enhance the MRP process by developing an MRP system using ReactJS, NodeJS, and PostgreSQL. The system was evaluated using heuristic evaluation techniques and the results indicated a positive outcome, the mean value is 0.83. The developed web based MRP system proved beneficial for small businesses, as it effectively reduced stocking costs and facilitated efficient raw material procurement. This research provides valuable insights into the implementation of web based MRP systems, enabling small businesses to optimize inventory management and enhance operational efficiency.

Strategi Operasi untuk Memproduksi Produk Baru Pada PT Inkoasku

This study aims to formulate the mission, objectives and strategy of operation or manufacturing for an automotive component factory that will produce a new product. The scope of this research is a case study at PT Inkoasku. Structured interviews were conducted with managers at PT Inkoasku related to customers and suppliers (external analysis) and quality, process, inventory, capacity, and supply chain (internal analysis). The questions are aimed at knowing the current external and internal operating conditions when only producing wheels and further needs when starting to produce disc’ as a new product. In addition to interviews, observations were also conducted on the operating system at PT Inkoasku. The results of external analysis show that the winner of orders from PT Inkoasku's operating system is price, while quality and delivery are order qualifications. Therefore, the operating strategies that can be applied include: choosing the type of batch process in running production, adding lean-six sigma in the quality system, automating the machine that will be used to produce disc’, optimizing the Material Requirement Planning (MRP) system and the min-max policy. in inventory management as well as mapping the procurement of goods and services and implementing Vendor-Managed Inventory (VMI) as a supply chain strategy. Keywords: operation management, operation strategy, manufacturing strategy, automotive component industry, QPICS

An Optimized System to Reduce Procurement Risks and Stock-Outs: A Simulation Case Study for a Component Manufacturer

In the current global system; supply chains are at risk due to increasing procurement shortages, supply disruptions, and the reliability of on-time deliveries with the original order quantities. As a result, an anticipated management model is of vital importance to provide companies with the productive flexibility necessary to adapt quickly to supply changes, in order to ensure the quality and delivery time through efficient management of stocks and supply costs. In this context, this research aims to develop a system to complement classical procurement planning based on inventory management methods and MRP (material requirements planning) systems by considering suppliers’ behavior regarding procurement risks. For this purpose, a system is developed that seeks to simulate the impacts of procurement shortages of different natures. Moreover, the research investigates the development of a system that performs procurement planning of a component manufacturer to determine the supply orders necessary to meet the master production schedule. The system is analyzed based on a set of indicators in the event that the supplier of a material needed for production does not supply on time or has short-term problems. Several scenarios are simulated, and the results are quantified by changing the procurement order quantities, which may or may not follow the economic order quantity (EOQ) model, and the potential procurement disruptions or shortages. The results show how the simulation and anticipation of potential suppliers’ procurement behavior concerning potential shortages and their probability are key for successful procurement within a joint strategy with classical procurement methods.

Implementation of POLCA Integrated QRM Framework for Optimized Production Performance—A Case Study

Quick response manufacturing (QRM) is a relatively new concept that enfolds all the preceding approaches, namely, just in time (JIT), flexible manufacturing, agile manufacturing, and lean production. QRM is compatible with existing materials requirement planning (MRP) systems and can be implemented efficiently. The ideas from QRM have been highly influential in custom-made engineer-to-order and make-to-order (ETO/MTO) high-mix and low-volume production environments. This study investigates the effectiveness of the POLCA (paired cell overlapping loops of cards) integrated QRM framework for reducing lead time. The POLCA integrated QRM approach was implemented in a precise product manufacturing industry. The industry was facing high penalties due to improper planning and uncontrolled lead times. The implementation of QRM with the POLCA framework indicated optimized production scheduling and significant improvement in lead time and work in process (WIP). After implementing the new manufacturing strategy, the performance parameters showed significant improvement in terms of reducing the percentage loss of profit.

Material Requirements Planning Under Demand Uncertainty Using Stochastic Optimization

Material Requirements Planning (MRP), a core component of enterprise resource planning (ERP) systems, is widely used by manufacturers to determine the production lot sizes of components. These lot sizes are typically computed based on deterministic and dynamic demand assumptions, while safety stocks, which hedge against demand uncertainty, are determined independently based on different assumptions. As the lot sizes and safety stocks are not determined simultaneously, sub‐optimal decisions are often used in practice. The critical impact of inventories and service levels in manufacturing motivates the study of stochastic optimization methods for MRP. In this study, we investigate stochastic optimization methods for MRP systems under demand uncertainty. A two‐stage and a multi‐stage model are proposed to deal with the static‐static and static‐dynamic decision frameworks, respectively. We first derive structural properties of the two‐stage and multi‐stage models to provide insights on the differences between the plans created with these two models. As multi‐stage stochastic programs are not convenient in real‐world applications, several practical enhancements are proposed. First, to address scalability issues, we employ heuristics in combination with advanced sampling methods. Second, to allow real‐time static‐dynamic decisions, we derive a policy from the solution of the multi‐stage model. Third, to deal with the dynamic‐dynamic decision framework, we employ a rolling horizon implementation. The effectiveness and performance of stochastic optimization for MRP are validated by numerical experiments, which demonstrate that the stochastic optimization approaches have the potential to generate significant cost savings compared to traditional methods for production planning and safety stocks determination.

Development of Distributed MRP System for Production Planning and Operation in Korean OEM/ODM Cosmetics Manufacturing Company

Up to date cosmetic OEM/ODM (original equipment manufacturing/original development manufacturing) industry receives attention as a future growth engine due to steady growth. However, because of limited research and development capability, many companies have employed commercial management platforms specialized for large-sized companies; thus, overall system effectiveness and efficiency is low. Especially, MRP (material requirement planning) system introduced originally in 1970s is employed to calculate the requirement of the parts. However, dynamic nature of production lead time usually results in incorrect requirements. In addition, its algorithm does not consider the capability of the production resources. Also, because the commercial MRP system calculates all subcomponent for fixed period, the more goods have subcomponent, the slower calculation is. Therefore, conventional MRP system cannot respond complicated situation in time. In this study, we will suggest a new method that can respond to complicated situations resulting from short lead time and urgent production order in Korean cosmetic market. In particular, a distributed MRP system is proposed, that consists of multi-functional and operational modules, based on the characteristic of the BOM (bill of material). The distributed MRP system divides components (i.e. products and parts) into several fields and decrease the problem size; thus, we can respond to dynamically changed data any time. Through this solution, we can order components quickly, adjust schedules and planned quantity, and manage stocks reasonably. In addition, a prototype of the distributed MRP system is presented in this paper, in which ERP (enterprise resource planning) sever data is associated with an excel spreadsheet via MSsql. System user interface is implemented by a VBA (visual basic for applications) tool. According to a case study, response rate for delivery and planning achievement rate were enhanced about 20%, and inventory turnover was also decreased. Consequently, the proposed system improves overall profit.

Designing a dynamic model to evaluate lot-sizing policies in different scenarios of demand and lead times in order to reduce the nervousness of the MRP system.

ABSTRACT The aim of this study is to provide a systematic approach to reduce the total cost and nervousness in material requirement planning (MRP) system based on appropriate lot-sizing policies under different scenarios of safety stock for demand and lead time. In this study, the system dynamics (SD) approach was utilized. The MRP system has been modelled and simulated and three scenarios were introduced: (1) stochastic demand-stochastic lead time, (2) stochastic demand-deterministic lead time, and (3) suggestion of the company. Four lot-sizing policies consist of a lot for lot, fixed order quantity, fixed period ordering, and economic order quantity was also evaluated under each scenario. The results showed that in scenario 2, the nervousness of the MRP system was at the highest level. Too, the lowest total cost in the situation of scenarios 1 and 2 has happened in the lot for lot policy, while it is for the suggestion of company related to fixed period ordering policy.

ANALISIS PERENCANAAN BAHAN BAKU DI UD. AA DENGAN MENERAPKAN METODE MATERIAL REQUIREMENT PLANNING (MRP)

This study discusses the application of the material requirements planning (MRP) method in the planning of raw materials in a furniture company. The purpose of this research is to know the planning of raw materials for furniture products in UD. AA, determine the most suitable inventory model to be applied to material inventory planning and analyze the role of the MRP system in raw material procurement planning. The forecasting method used is the quantitative method of time series analysis, determining the master production schedule, calculating lot sizing (LFL, EOQ, POQ methods). From determining the Master Production Schedule, it is found that the cabinet production plan for the next three months is 4 units per period or week, and based on the calculation of Material Requirement Planning (MRP) it can be seen what components are needed for the manufacture of cabinets, how many and when each component is required. Therefore it is obtained that the total raw material requirement for wood for the next three months is 11.34 m³.

Application of material requirement planning method in raw materials planning on sardine product in PT. Blambangan Foodpackers Indonesia

PT. Blambangan Foodpackers Indonesia is one of the big companies in the Banyuwangi area and is a company engaged in the manufacturing industry that is a company processing canned fish. The number of constraints in planning raw material inventories that cause the occurrence of excess or accumulation of raw materials and shortages causes freezing of operational costs. The implementation of the material requirement planning (MRP) system is expected to be able to find out the optimal amount of raw material inventory and the right ordering time to meet production needs with optimal costs. This study was aimed to determine the exact lot size technique based on inventory costs and to compare the MRP method with inventory in the company based on total inventory costs. The research method used was the determination of the lot size and MRP system. The results showed that the lot for lot method for ASCK cans, ASCB cans, ASTB cans, and pasta, while EOQ for ASTK cans, ASEPK cans, sugar, salt and flour. The MRP system in each raw material can be used as an indicator to minimize total inventory costs when compared to the company's method during the previous period.

Optimization of production cost for integrating job shop scheduling with production resources

New manufacturing technologies are emerging every day, pushing the bounds of possible and redefining the world around us. This is especially true in the world of computing where much work goes into the design and development of new planning systems, tools, and software packages. This led to the development of various process analysis and manufacturing software packages. Many of these packages use the heuristic methods for solving the problems. Optimization is a design technique in which the best design solution for a problem is seeded using multiple execution and comparison of analysis results. Optimization is carried out for one or more responses acted upon by various constraints. Job shop is an environment for the manufacture of large variety low volume products. In general, the integration of production functional areas with job shop scheduling problems is to be considered as too hard and complex problems. The Production functional areas are Material Requirement Planning, Production Resource Planning, Manufacturing Resource Planning, Employee Time tabling, Human Resource Planning and Lot Size etc. To minimize the loss due to resource allocation, integration of production function resources and job shop scheduling is encouraged. Production resources are resourcing the material, human labours and manufacturing machine tools. Manufacturing assumptions are deployed to found difficult integrated manufacturing systems. In this paper, a hierarchy mathematical modelling approach has been developed to integrate the production resources planning and job shop scheduling. In which, material requirement planning system for material resource arrangement, employee timetabling module for human resource allocation and manufacturing resource planning for machine allocations are to be considered. For solving the unique hierarchy model, a shuffled frog leaping heuristic algorithm (SFLA) is proposed and implemented for minimizing the overall production cost. To prove the optimized results, the integrated system has been tested with real time case studies.

Inventories Analysis of Animal Feed Raw Materials by Using the Silver Meal Method and Wagner within Algorithm (Case Study of PT. XYZ Makassar)

PT. XYZ Indonesia is a national company engaged in animal feed production. through the Production Planning Inventory Control (PPIC) department has implemented the Material Requirement Planning (MRP) system for inventory control but in the implementation of the company’s MRP system, the PPIC department only considers the quantity of raw materials that can meet demand without regard to the issue of lot size inventory efficiency, so that the cost of raw material inventory is high. The purpose of this research is to compare the cost of procuring raw materials that have been carried out by the company with the cost of procuring raw materials using the silver meal method and Wagner Within algorithm. From the results of research and analysis conducted a comparison between the methods used by the company with the lot size silver meal method and Wagner Within algorithm in order to obtain the total inventory cost of raw materials in 2016, where yellow corn and rice bran raw materials have the same inventory costs between the methods used by the company, the silver meal method and the Wagner Within algorithm method are Rp. 1,080,000 so they do not have cost savings. As for the inventory of lime stone raw materials, it is more optimal to use the silver meal method and Wagner Within algorithm with a total inventory cost of Rp. 606,394 and can save costs by 35.08%.

Elaboration of a production planning system for a snack manufacturing company

A Production Planning System was made for a snacks’ production Company by the development of a MRP system in order to increase the present production and to meet the demand. The methodology used was Material Requirement Planning (MRP) that basically consists in a logic system able to manage and control material requirement planning based on a number of pieces, components and material needed for manufacturing, in other words, it is a production planning system. The outcome of the Project has been an application with MRP features, with complements such as line balance, purchasing Budget of raw materials, among other things. The application relies on protection of information and backup by the same. The executable application of MRP system has contributed to reduce 50% the production breach at the company, as well as reducing waste in a 40%, idle time in a 50% and raw material costs in a 25%, achieving the stated goal.

Analisis Sistem Persediaan Bahan Baku Air Kelapa pada Industri Nata de Coco (Studi Kasus PT Keong Nusantara Abadi)

Inventory is an important thing for the industrial company, so determination of order quantity must be done optimally and reduce the inventory cost. PT Keong Nusantara Abadi is an industrial company for processing of nata de coco that requires an inventory control system so that the purchase of raw material becomes optimal. Therefore, this research was conducted to analyze inventory control carried out by PT Keong Nusantara Abadi and determine alternative methods of inventory control of raw material for the company. This research use Material Requirement Planning (MRP) system. MRP system has two ways to determine the order quantity called lot sizing decision. Techniques for determining the quantity of order is Economic Order Quantity (EOQ), Lot for Lot (LFL), and Part Periode Balancing (PPB). The technique of determining the order quantity that is best use by PT Keong Nusantara Abadi is EOQ which result in lower inventory cost than inventory control techniques by the company that is saved by 9%, 10%, 7,3% consecutively during 2015, 2016, and 2017.

MIP-based heuristic algorithm for finite capacity MRP problem in hybrid flow shop with unrelated parallel machines

A main drawback of the material requirement planning (MRP) system is that it assumes fixed lead time, resulting in capacity problems recently called finite capacity material requirement planning (FCMRP). This paper proposes a mixed integer programming (MIP)-based heuristic algorithm that can solve the industrial scale FCMRP problem in hybrid flow shop with unrelated parallel machines. The heuristic is applied to construct an initial sequence of operations, whereas the MIP model is applied to determine the optimal machines and start times for the operations based on the initial sequence. The objective is to minimise the total cost, defined as the sum of tardiness, earliness, idle time, and work in process (WIP) holding costs. Performances of the proposed algorithm are evaluated using real data from automotive industries. The result shows that the total cost of the proposed algorithm are substantially reduced compared with the recent FCMRP algorithm (HGATS). Moreover, the required runtime is within a practical limit.

MIP-based heuristic algorithm for finite capacity MRP problem in hybrid flow shop with unrelated parallel machines

A main drawback of the material requirement planning (MRP) system is that it assumes fixed lead time, resulting in capacity problems recently called finite capacity material requirement planning (FCMRP). This paper proposes a mixed integer programming (MIP)-based heuristic algorithm that can solve the industrial scale FCMRP problem in hybrid flow shop with unrelated parallel machines. The heuristic is applied to construct an initial sequence of operations, whereas the MIP model is applied to determine the optimal machines and start times for the operations based on the initial sequence. The objective is to minimise the total cost, defined as the sum of tardiness, earliness, idle time, and work in process (WIP) holding costs. Performances of the proposed algorithm are evaluated using real data from automotive industries. The result shows that the total cost of the proposed algorithm are substantially reduced compared with the recent FCMRP algorithm (HGATS). Moreover, the required runtime is within a practical limit.

PRODUCTION PLANNING AND RAW MATERIALS SUPPLY TO MEET FLUCTUATIVE DEMAND FOR LIVESTOCK FEED FLOUR

Production is creating goods and services, CV Bulu Nusantara is a company that processes poultry feathers, fish bones, beef bones, shells into dough flour for livestock feed. Sometimes these companies encounter overproduction and sometimes production shortages. The researcher intends to run production planning and raw material need planning that can meet fluctuative demand and minimize production costs with JIP and MRP approaches. From the research carried out, obtained forecasting demand result for period June 2017 - May 2018 for feather flour, fish flour, bone meal and crab flour for 191,040 kg, 144,876 kg, 135,189 kg and 158,028 kg. From production master schedule made based on forecasting and production capacity result, a plan is obtained for June 2017 - May 2018 of Rp. 1,858,057,638. Material requirements planning (MRP) can be seen when, how many orders, how many times the order for raw materials is within 1 year, so that the raw material inventory is optimal in accordance with the master production schedule, in addition to MRP also obtained for the total cost of raw materials for planning period June 2017 - May 2018 amounting to Rp. 16,710,197,190. From the cost of labor and raw materials, total production planning is Rp. 18,568,254,838, if the total cost of production planning is compared to the total production costs of the company in 2016-1017 amounting to Rp. 18,690,250,000 then the difference in annual production costs of Rp. 121,995,170. This means that by implementing JIP and MRP systems the company will save production costs by Rp. 121,995,170.

A study on material requirement project implementation in Thai automotive organizations

ln response to ever-increasing regional and global competition, automotive manufacturing companies in Thailand are looking to improve the efficiency and effectiveness of their operations through the adoption of sophisticated manufacturing planning and control systems in general, and Material Requirements Planning (MRP) systems in particular. Despite its growing popularity, an in-depth review of the academic literature has revealed no systematic studies of how, and how successfully, Thai automotive manufacturers have managed to implement MRP in practice. Indeed, there appears to be general dearth of studies of this kind, at least as far as newly-industrialising countries are concerned. This study begins this paper by presenting a brief literature review on MRP implementation, first in advanced industrial economies and then – as far as the evidence allows – in newly-industrialising countries. The major part of the paper concerns our empirical investigation of the way in which MRP systems are being implemented in Thai automotive manufacturing companies. The investigation is based on a major questionnaire survey of about 120 companies, of which about 67 companies are currently using some kind of MRP system. In addition to more general questions on the nature of the companies concerned and the production processes used, the survey posed specific questions on the (actual or expected) costs and benefits to be obtained from MRP, as well as the implementation process used. The findings from the survey suggest that MRP implementation in Thai automotive companies is relatively similar to implementation in manufacturing companies in the newly industrialised countries; however, there are some dissimilarities to MRP implementation in Western countries.

الإتجاهات الحدیثة فی إدارة المخزون و أثرها على کفاءة أداء إدارة سلاسل التورید فی المنظمات الصناعیة : دراسة میدانیة فی قطاع صناعة الغزل و التسبیح المصری

الملخص: إتجهت العديد من المنظمات إلى محاولة إحداث الدمج والتکامل بين إدارة سلاسل التوريد وبرامج تکنولوجيا المعلومات في محاولة منها لتحسين کفاءة وأداء إدارة سلاسل التوريد الخاصة بها، ولعل من أهم الأساليب والإتجاهات الحديثة المستخدمة في إدارة حرکة المواد والمخزون داخل إدارة سلاسل التوريد والمعتمدة على برمجيات تکنولوجيا المعلومات هو نظام تخطيط الإحتياجات من المواد .MRP) Material requirement planning system) وفي إطار ما سبق فإن هذه الدراسة تهدف إلى دراسة إمکانية تطبيق نظام تخطيط الإحتياجات من المواد لإدارة حرکة المواد والرقابة على المخزون داخل إدارة سلاسل التوريد الخاصة بشرکات قطاع الغزل والنسيج والملابس الجاهزة في قطاع الأعمال العام المصري، وأثر ذلک على أداء شرکات قطاع الغزل والنسيج والملابس الجاهزة في قطاع الأعمال العام المصري. Abstract: several organizations started trying to integrate the SCM with the IT software packages in an attempt to enhance the efficiency and performance of their respective supply chains. One of the most vital and newly used approaches in the SCM, which fully utilizes the IT software packages, is the MRP.Based on the previous, this research aims at testing the possibility of implementing MRP in order to manage the flow of the materials and monitor the storage in the SCM of the textile and ready-made clothing companies in the Egyptian Public Business sector.

A mathematical programming model for integrating production and procurement transport decisions

• New mathematical programming model for extending MRP systems. • Integrating procurement transport and production planning decisions. • Validation with real world data from an automobile company. • Improvement of the current heuristic procedure in the studied company. In this paper, we propose a new mathematical programming model for integrating production and procurement transport planning decisions in manufacturing systems in a unique optimization model. This problem was introduced conceptually and dubbed as MRP IV by Díaz-Madroñero et al. (2012) to extend the current MRP (material requirement planning) systems. This proposal simultaneously considers material, production resources capacities and procurement transport planning decisions with different shipping modes (such as full-truckload, less-than-truckload and milk-run) in the supply chain to avoid suboptimal results, which are usually generated due to sequential and independent plans. We considered an industrial automobile company to validate the proposed model using real world data. The results obtained by the MRP IV proposed model, in terms of total planning costs and transport efficiency indicators, are better than those obtained in the current heuristic procedures followed in the company under study.