MRP

Material Requirements Planning (MRP)
Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes.

An MRP system is intended to simultaneously meet three objectives:

 * Ensure materials are available for production and products are available for delivery to customers.
 * Maintain the lowest possible material and product levels in store
 * Plan manufacturing activities, delivery schedules and purchasing activities.

In MonsoonSIM, MRP is one of the core modules. In this case, MRP is responsible for helping teams to
MonsoonSIM supports multiple levels of complexity. Learners are encouraged to start with the basic module, called Baseline model, and slowly progress to more advanced functionalities.
 * create purchase orders based on demands, ensuring enough materials and goods are available for delivery
 * to maintain lowest possible materials and goods in the warehouse

Here are what you will learn in the MonsoonSIM MRP (Baseline) :

 * Concept of Bill of Materials
 * Concept of materials and goods requisition planning based on demands
 * Concept of the percentage of production vs outsourcing affecting the outcome of the MRP
 * Concept of buffer stock or minimum stock level

In MonsoonSIM, the MRP module is related to the following department (modules)
Note: There is no pre-requisite to learning the MonsoonSIM Baseline concepts
 * Production (PRD)
 * Procurement (PMN)
 * Human Resources Management (HCM)

Operating model of MonsoonSIM MRP module
Baseline:
 * MRP will generate Purchase Requisitions (PR) based on the shortfall of the products or raw materials by calculating the current demand and the current supply.
 * Demand is calculated based on:
 * Outgoing shipment to retail stores committed
 * Sales Orders committed
 * Buffer stock settings
 * Supply is calculated based on:
 * Stock on hand
 * Raw materials on hand
 * Purchase Orders committed
 * Incoming shipment from retail stores
 * The MRP will determine how many finished goods to purchase or how many raw materials to purchase depending on the setting of the percentage of stock to be produced vs outsourced
 * Everytime MRP is executed, all pending Purchase Requisitions (unapproved PO) will be canceled