1 What is the relationship that MPS have with the MRP proces

1. What is the relationship that MPS have with the MRP process? What is gross requirements, projected available balance, and net requirements? Reference

Solution

MPS is master production schedule and MRP is material requirements planning. MPS is used to translate the customer demand into a build plan. Inputs of MPS are demand forecasts, lot size, lead time etc. The output generated by the MPS is used for decision making and includes information on  amounts to be produced, staffing levels etc. The relationship between the MPS and MRP is that the outout from the MPS is used to create a MRP schedule. MRP is a production planning schedule that is formed on the basis of output being given by MPS.

Gross requirements is used in MRP and refers to the requirements of inventory that is needed during each period. Projected available balance is the balance of inventory after deducting the gross requirements from the scheduled receipts. Net requirements is the amount needed to meet the requirements and safety stock. It is calculated as gross requirements - available inventory.

Reference: https://irzaidan.files.wordpress.com/2012/02/mrp_summary1.pdf