<P>a very good material for MRP<BR><BR><BR>MATERIAL REQUIREMENT PLANNING<BR>MGT2405, University of Toronto, Denny Hong-Mo Yeh<BR>Material requirement planning is not only a technique for planning “material ”<BR>requirements. It is also a logic that relates all the activities in a company to customer<BR>demands. People can manage all the resources in a company by using MRP logic together<BR>with data processing in other areas. This entire system is called a Manufacturing Resources<BR>Planning System, or MRP II. With the introduction of technological enhancements such as<BR>open systems platforms and client/server architecture, MRP II systems are now evolving<BR>into Enterprise Resource Planning Systems (ERP). An ERP system plans not only the<BR>allocation of manufacturing resources but also other resources, and has applications in<BR>service as well as manufacturing industries. In this book, we concentrate our discussion on<BR>manufacturing.<BR>Nature of Demands<BR>All systems are implemented to satisfy customers’demand. There are different sources of<BR>demand for a product and its component items. Some item requirements are determined<BR>by the needs of other items while others are specified by customers. The former<BR>requirements also come from customers, but indirectly. Item requirements can be<BR>classified as dependent and independent demands.<BR>Independent demand<BR>Demand for an item that is unrelated to the demand for other items. Demand for<BR>finished goods, parts required for destructive testing, and service part requirements<BR>are examples of independent demand.<BR>Dependent demand<BR>Demand that is directly related to or derived from the bill of material structure for<BR>other items or end products. Such demands are calculated and need not be forecasted.[subject_ERP] </P>

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