Material Requirements Planning Research Articles

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.

Implementation of Transactional Planning Systems for the Plastics Industry

Transactional systems are an alternative process improvement for any industrial sector; however, due to the rapid growth of the plastics industry worldwide, this industry requires the automation of production with agile systems. This document presents a procedure to implement transactional tools of the Master Production Schedule (MPS) and Materials Requirements Planning (MRP) for the automation and control of the operations area processes in an organization. These processes are part of Enterprise Resource Planning (ERP) tools that use connections to mobile devices and are often compatible with different customer support systems, allowing the integration of all business units to interact with the manufacturing control and purchasing. The method used in the research have a quantitative cut in which 15 companies were studied in the plastics sector in Mexico and was divided in three phases, these focused on the revision of the business processes and the analysis of the substantive processes of the organization that allowed the subsequent establishment of proposals for improvement. In the final proposal of implementation of the tool tansaccional included: the functional analysis of the systems, the planning and their evaluation.

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.

Usulan Perencanaan dan Pengendalian Persediaan Bahan Baku Menggunakan Metode Lot Sizing pada Pabrik Mebel

<p>This research discusses the planning and inventory control of raw materials in PT Rackindo Setara Perkasa which is one of the manufacturer in Indonesia which is engaged in the industry of knock-down furniture. The purpose of this study is to planning and controlling the inventory of raw materials with the lowest cost. The research is conducted to develop demand forecast in 2016, to develop the aggregate planning using LINGO software, then continued in the design of the Master Production Schedule (MPS) and Material Requirement Planning (MRP). This research discusses the comparison of several methods of Lot Sizing in MRP, such as the Economic Order Quantity (EOQ), Period Order Quantity (POQ) and Least Total Cost (LTC). The selected Lot Sizing method is a method with the lowest inventory cost.</p><p>Keywords: Inventory Control, Forecasting, Aggregate Planning, Lot Sizing, Master Production Schedule, Material Requirement Planning</p>

Perencanaan dan Pengendalian Persediaan Bahan Baku Benang dengan Lot Sizing Economic Order Quantity

<p>The object of this study is the inventory system of manufacturing companies with sock products in Tangerang, Banten. Types of socks produced are plain white socks, black socks, and small socks. This study aims to determine the description of the planning and control of raw material inventory and find out how much raw materials to be prepared as well as the total cost of production produced by applying the method of Material Requirement Planning from the production process. In its production activities, the company uses 4 main raw materials making white socks namely Polyester White yarn, Spandex, Nylon, and Rubber. In one day, production produces 3 dozen socks. The raw materials used are 1 cone yarn for 2.5 dozen. So to produce 3 dozen socks a day, it takes 1.2 cone threads. From the analysis, it is known that the booking fee is Rp.28000 per message and the storage fee is Rp.2000 per unit per year. Thus the value of economic needs or Economic Order Quantity generated is 157 units. Thus, for Polyester White yarn material (75%) requires 47.1 cones, Spandex yarn (15%) requires 9,42 cones, nylon yarn (5%) and rubber yarn (5%) equally require 3.14 cone. Set up fee Rp.156586 while the storage fee Rp.157000 so the total cost Rp.313586.</p><p>Keywords: Socks, Material Requirement Planning, Economic Quantity</p>

PENERAPAN METODE MATERIAL REQUIREMENT PLANNING (MRP) DALAM PERENCANAAN PERSEDIAAN BAHAN BAKU BIJI PLASTIK UNTUK MEMINIMUMKAN BIAYA PERSEDIAAN PADA PT UNISON JAYA DI TANGERANG

<p><em>One of the most important things in production activity is how to manage a raw material requirement level in economics level to support production planning activities. An established company usually uses Material Requirement Planning (MRP) method to provide an effective management system of material requirement to minimize inventory cost.</em><em> </em><em>This research found out that, PT Unison Jaya needs to use Material Requirement Planning (MRP) method to minimize the inventory cost. When PT Unison Jaya decided to use Material Requirement Planning (MRP)method, they need to support their system in to computerize system and held on the job training for the production staff to use this method.</em></p><p><em>Key words: Lot Sizing, Inventory Cost, MRP</em></p>

Robust material requirement planning with cumulative demand under uncertainty

In this paper, we deal with the problem of tactical capacitated production planning with the demand under uncertainty modelled by closed intervals. We propose a single-item with backordering model under small uncertainty in the cumulative demand for the Master Production Scheduling (MPS) problem with different rules, namely the Lot For Lot rule and the Periodic Order Quantity rule. Then we study a general multilevel, multi-item, multi-resource model with backordering and the external demand on components for the Material Requirement Planning (MRP) problem under uncertainty in the cumulative demand. In order to choose robust production plans for the above problems that hedge against uncertainty, we adopt the well-known minmax criterion. We propose polynomial methods for evaluating the impact of uncertainty on a given production plan in terms of its cost and for computing optimal robust production plans for both problems (MPS/MRP) under the assumed interval uncertainty representation. We show in this way that the robust problems (MPS/MRP) under this uncertainty representation are not much computationally harder than their deterministic counterparts.

The Integration Model of Closed-Loop Supply Chain Resource Allocation Considering Remanufacturing

ï€ Logistics resource planning (LRP) is an integration model of materials requirement planning (MRP) and distribution resource planning (DRP) which is a resource allocation technology. It is a technology of satisfying both production material supply and resource allocation optimization which is based on inventory management. For the remanufacturing supply chain, recycling and rebuilding of products form a reverse materials movement loop which challenges the traditional LRP system. For the characteristics of reverse logistics of remanufacturing supply chain, we propose a closed-loop supply chain resource allocation model based on autonomous multi-entity. We focus on integration resource allocation model of MAP and DRP considering remanufacturing.

Managing demand variability and operational effectiveness: case of lean improvement programmes and MRP planning integration

Although a lean focus is widely popular in general manufacturing environments, there are limited studies that empirically investigate how lean improvement programmes can be integrated with a material requirement planning (MRP) system. The aim of this research is to examine if the integration of lean improvement programmes with a MRP system has a positive effect on operational effectiveness when manufacturers are experiencing high levels of customer demand variability. Based on the contingency theory perspective and using data collected from the international manufacturing strategy survey (IMSS-V), a sample of 382 international manufacturing companies are first divided into two groups based on the degree of their customer demand fluctuation. Moderated hierarchical regression is then applied to each group to empirically test the research hypotheses. Statistical results suggest that operational effectiveness significantly improves when lean improvement programmes support MRP systems as manufacturers are experiencing high levels of fluctuations in demand.

Production-inventory-routing coordination with capacity and time window constraints for perishable products: Heuristic and meta-heuristic algorithms

Many industries are involved in production and distribution of perishable products. On one hand, due to the short life cycle of these products, there should be more precaution on the issues related to supply chain planning including material requirement planning, production, transportation, etc. compared to the ones in other industries. On the other hand, as there is a fierce competition among various companies, the need for coordination in such activities is imperative, where the use of an integrated approach is justifiable. One of these coordination problems is how to integrate important operational decisions including production scheduling and vehicle routing problem; the most important issues to fulfill customers’ satisfaction. In this paper, a mathematical programming approach is taken to consider these two issues together in order to maximize the profits obtained by selling the products. At the production level, a multi-stage, multi-site, multi-period production system with production capacity constraints is considered, in which the inventory at each stage of production is taken into account to calculate the corresponding holding costs as well as to schedule a more appropriate plan. At the delivery level, the vehicle routing problem is tackled regarding different transporting vehicles with different capacities in a multi-period condition. In addition, time windows constraints are included at this planning level for the perishable products. Two heuristic and meta-heuristic algorithms are proposed to solve the proposed problem. Several numerical examples are solved at the end to evaluate the performances of the two solution methods and to show the effectiveness and efficiency of the proposed algorithms. The obtained results indicate that the proposed meta-heuristic algorithm is better than the heuristic algorithm in terms of the objective function value.

Cover-Time Planning/Takt Planning: A technique for materials requirement and production planning

Cover-Time Planning, or Takt Planning, is presented. It is a system for calculating material requirements and start of purchases and production. Requested production rates of sales items, or alternative prefabricated modules in stock, are “broken down”, exploded, to create the need for components, for all underlying items (articles) in the Bill of Material. Inventory and already ordered replenishments are compared with the item’s desired production rate. How long already made actions are expected to cover the desired expected sales and production rates is compared with the item’s lead time; if a forward future shortage is likely the article is signalled for a refill. With examples is described how make-to-order production is done easily. The method is a type of reorder point system, but with time instead of quantity as decision variable. Unlike a traditional reorder point system increases and decreases of production can be planned. Future work load in various production sections can be estimated. It is described how an “Available-to-promise”-system should be designed and used. Cover-Time Planning (CTP) is a complete alternative to Materials Requirements Planning (MRP). CTP responds faster than MRP, since MRP for each structural level uses a batch size to “break down” and to magnify the need at the underlying level. In the end a large material acquisition needs to be ordered maybe just to build a single end item. CTP uses the end item requirement rates on all structural levels shifted with the lead times, when customer demand changes, the entire production chain react simultaneously.

USULAN PERAMALAN PRODUKSI MOBIL BMW DENGAN JADWAL PRODUKSI INDUK DAN PERENCANAAN MATERIAL TERHADAP DIVISI LOGISTIC PRODUK PLANNING (STUDI KASUS : PT. TJAHJA SAKTI MOTOR, JAKARTA UTARA)

The delay of productivity process can make losses that are not small, even that losses can make the organization bankrupt. PT. Tjahja Sakti Motor do not yet have forecasting method, forecasting is only based on order BMW Indonesia. It can make the demand from the other consumer can't be fulfilled. To avoid that, they need a right forecasting method for fulfilling the demand. Researcher tries to make forecasting method that fit with demand in PT. Tjahja Sakti Motor. Researcher uses actual data demand from 2012 until 2014. After that, the researcher concluded that demand data is random demand. Therefore researcher must choose one from three forecasting method that fit with the random demand data (Simple Moving Average, Weighted Moving Average, and Exponential Smoothing). Weighted Moving Average is chosen, because have Tacking Signal with the smallest interval (-2.03 - 3.09). After decided the method of forecasting, researcher makes Master Production Planning (MPS) which breakdown to be Material Requirement Planning (MRP) with Bill Of Material (BOM) until level two. Keywords: Peramalan, Tracking Signal, MPS, MRP, BOM

Working capital management practices in India: survey evidence

PurposeThe purpose of this paper is to investigate the working capital management (WCM) practices adopted by Indian firms listed on the National Stock Exchange (NSE).Design/methodology/approachUsing a questionnaire, the authors gather data from 110 financial managers and use various statistical techniques to test for statistical significance.FindingsThe evidence shows that the majority (54.5 percent) of sample firms follow a moderate approach in financing their activities, which involves a trade-off between liquidity and profitability. Respondents tend to use an informal approach for WCM and consider receivables management as the most important component of WCM. In terms of WCM monitoring and financial measures, respondents mainly consider the cash conversion cycle and net working capital. Indian firms tend to use centralized cash management and rely heavily on material requirement planning (MRP) and enterprise resource planning (ERP) for proper inventory management.Research limitations/implicationsTests involving firm size, foreign sales, and average age do not differ significantly between the NSE-listed firms and the sample firms. This evidence lessens concerns of non-response bias and the ability to generalize the findings to Indian firms.Originality/valueBy updating and extending previous research on WCM, this study fills a gap in the literature by providing insights into practices adopted by Indian firms in managing WCM and its components.

Brite Lite Switches, Inc

This case deals with production and inventory planning in a dependent-demand environment. Students must choose and evaluate a master production schedule in the course of determining the net requirements of components in a two-level end-product explosion. The case is intended to be taught with Note on Material-Requirements Planning (OM-0816) or similar expository reading about MRP. Excerpt UVA-OM-0815 Rev. Oct. 26, 2009 BRITE LITE SWITCHES, INC. Margret Nedelkoff, division manager for the Plastics Component division of Brite Lite Switches (BLS), was discussing with Flip Edison a proposal for a new system for planning and controlling production. Edison, the new manager of production planning, had drafted a memo (Exhibit 1) suggesting a move from the current inventory control process to a material requirement planning (MRP) system. While Nedelkoff was aware of other manufacturers' successes with MRP, she also was skeptical about the benefits Edison described in his memo, given that the division had instituted a new, equally promising inventory control system only two years earlier that had failed to live up to expectations. As Nedelkoff rose to end the meeting, she said: Flip, I appreciate what you are saying, but I'm just not sure that this is what we need. We have yet to see any significant return on our $ 200,000 investment in a new EOQ/reorder-point system two years ago. And on top of that, putting in a new system is really disruptive. The supervisors and employees on the shop floor have to learn a whole new way of doing things, and if it is anything like last time, I'll be getting a phone call every day for months from Jack Reynolds, VP of Marketing, telling me how many sales he has lost because we can't deliver what he needs. I know the current system isn't perfect, but I'm not sure that it can't be improved. I am going to have to think a lot about this before I commit the kind of resources and time you are talking about. Edison left the office determined to address Nedelkoff's concerns. He reasoned that perhaps he had moved too aggressively on the changes he recommended. If he could demonstrate the benefits on a few items of inventory, he was sure that she would see the logic of switching the entire planning and production process over to his proposed system. . . .

Linking planning strategies with supply chain in an extended environment: a theoretical framework

Literature shows that to control production operations, to achieve optimum inventory level and to schedule the requirements according to the forecasted demand, implementation of material requirement planning (MRP) on the manufacturing system is necessary. It helps in establishing specifications of a production system and optimizes analysis of the process line focusing on establishing all the necessary data for the specification regarding the nature of production system and the inventories issues. To put MRP in to a process, the purpose of this paper is to develop a framework to integrate the work process flow that gives a simple image of the process flow for any general production system, concerning the operations and their management. Flow of data can be followed from forecasting of the demand to the delivery order, as well as tracking of material and customer order is made possible.

Linking planning strategies with supply chain in an extended environment: a theoretical framework

Literature shows that to control production operations, to achieve optimum inventory level and to schedule the requirements according to the forecasted demand, implementation of material requirement planning (MRP) on the manufacturing system is necessary. It helps in establishing specifications of a production system and optimizes analysis of the process line focusing on establishing all the necessary data for the specification regarding the nature of production system and the inventories issues. To put MRP in to a process, the purpose of this paper is to develop a framework to integrate the work process flow that gives a simple image of the process flow for any general production system, concerning the operations and their management. Flow of data can be followed from forecasting of the demand to the delivery order, as well as tracking of material and customer order is made possible.

MODEL PENGADAAN BAHAN BAKU KURMA SALAK MENGGUNAKAN TEKNIK LOT for LOT

The raw material is absolutely a need for a company to smooth production process. Procurement of raw materials is a major factor in the production process activities. One measure of the performance of control of raw material procurement is to minimize the cost. This study was conducted to determine and specify in providing a more economical raw materials between methods of this industry and Lot for Lot Technical of Material Requirement Planning. Calculation of the total cost of raw material requirement by considering the cost of purchase and cost of ordering. The data used to calculate the total cost of procurement of products obtained from the data demand of snake fruits are translated based on the structure of the product to determine the need for raw materials. Material Requirement Planning Methods with Lot for Lot technical generate total procurement costs are lower than the method of this industry. The total cost of procurement by the method of the company amounted to Rp 5,396,000.00 and Rp 5,331,600.00 of lot for lot. The savings that can be generated by lot for lot is Rp.160.400 or 2.97%. Based on the results of the calculations are more economical method to be applied in industry with Lot for Lot.

Revisiting rescheduling: MRP nervousness and the bullwhip effect

We study the material requirements planning (MRP) system nervousness problem from a dynamic, stochastic and economic perspective in a two-echelon supply chain under first-order auto-regressive demand. MRP nervousness is an effect where the future order forecasts, given to suppliers so that they may plan production and organise their affairs, exhibits extreme period-to-period variability. We develop a measure of nervousness that weights future forecast errors geometrically over time. Near-term forecast errors are weighted higher than distant forecast errors. Focusing on replenishment policies for high volume items, we investigate two methods of generating order call-offs and two methods of creating order forecasts. For order call-offs, we consider the traditional order-up-to (OUT) policy and the proportional OUT policy (POUT). For order forecasts, we study both minimum mean square error (MMSE) forecasts of the demand process and MMSE forecasts coupled with a procedure that accounts for the known future influence of the POUT policy. We show that when retailers use the POUT policy and account for its predictable future behaviour, they can reduce the bullwhip effect, supply chain inventory costs and the manufacturer’s MRP nervousness.

A rolling horizon approach for material requirement planning under fuzzy lead times

This paper proposes a fuzzy multi-objective integer linear programming (FMOILP) approach to model a material requirement planning (MRP) problem with fuzzy lead times. The objective functions minimise the total costs, back-order quantities and idle times of productive resources. Capacity constraints are included by considering overtime resources. Into the crisp MRP multi-objective model, we incorporate the possibility of occurrence of each uncertain lead time using fuzzy numbers. Then FMOILP is transformed into an auxiliary crisp mixed-integer linear programming model by a fuzzy goal programming approach for each fuzzy lead time combination. In order to defuzzify the set of solutions associated with each fuzzy lead time combination, a solution method based on the centre of gravity concept is addressed. Model validation with a numerical example is carried out by a novel rolling horizon procedure where uncertain lead times are updated during each planning period according to the centre of gravity obtained. For illustration purposes, the proposed solution approach is satisfactorily compared to a rolling horizon approach in which lead times are allocated when the possibility of occurrence is established at one.

Improving production planning through finite-capacity MRP

Materials Requirement Planning (MRP) technique is widely employed by most manufacturing companies, even though field applications point out some weaknesses, including ignored production capacity constraints and fixed lead-times. These weaknesses often lead to infeasible production schedules, which trigger fluctuating workloads over time, significant adjustment effort and eventually unpredictably long lead times. This paper introduces a capacity-oriented MRP procedure that combines the traditional MRP procedure with an approach based on linear programming: in this way, requirement of lead times pre-determined a priori outside the MRP procedure is overcome. The new procedure is then applied to a real-life company and results highlight that feasible plans of orders are generated without requiring lead-times as input and without relevant computational burden.