Question

discuss the importance of the master production schedule in an MRP system. Discuss the meaning of MRP terms such as planned order release and the scheduled order receipt.

Answer 1

The master production schedule “drives” the system. It states the planned due dates for end items. Material requirements planning computer runs, however, involve an iterative process. The master production schedule “proposes” or “hypothesizes” a tentative schedule. After the MRP run with this schedule, the shop scheduler examines the MRP plan for impractical loads on the productive system—either by stating excessive demands on personnel or equipment, or in excessive idle time. Then the master production schedule is revised and the program is run again.

Because the entire MRP system is geared to satisfying the master production schedule, it is critical that the master production schedule be correct at the start of the first MRP run. The production scheduler then knows what effects any changes he makes on the schedule will have on the original MRP schedule. He can then take appropriate action as necessary, such as requesting that customers be contacted to try to extend promised dates if they are too close, or to arrange for early delivery or additional storage space if products will be completed prior to the promised delivery date

A planned order release is an order currently planned to be released. It has not been released. Consequently, the planned order release can be changed based upon changes in demand as one example.

A scheduled order receipt, on the other hand, reflects an order that has already been released. The scheduled order receipt indicates the anticipated arrival of the released order. Due to variations in delivery times, it may not arrive exactly at the planned arrival time.