MRP & ERP
Material Requirements Planning (MRP)
A dependent demand technique that uses a BOM, inventory, expected receipts, and a master production schedule to determine material requirements
Bill of Material (BOM)
A listing of the components, their description, and the quantity of each required to make one unit of a product
Time Fences
A means for allowing a segment of the master schedule to be designated as "not to be rescheduled"
Load Report
A report for showing the resource requirements in a work centre for all work currently assigned there as well as all planned and expected orders
Gross Material Requirements Plan
A schedule that shows the total demand for an item (before subtraction of on-hand inventory and scheduled receipts) and when it must be ordered from suppliers, or when production must be started to meet its demand by a certain date
Material Requirements Planning II (MRP II)
A system that allows, with MRP in place, inventory data to be augmented by other resources available; in this case, MRP becomes material resource planning
Closed Loop MRP System
A system that provides feedback to the capacity plan, master production schedule, and production plan so planning can be kept valid at all times
Distribution Resource Planning (DRP)
A time-phased stock-replenishment plan for all levels of a distribution network
Master Production Schedule (MPS)
A timetable that specifies what is to be made and when
Enterprise Resource Planning (ERP)
An information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders
System Nervousness
Frequent changes in an MRP system
Lead Time
In purchasing systems, the time between recognition of the need for an order and receiving it; in production systems, it is the order, wait, queue, setup, and run times for each component
Efficient Customer Response (ECR)
Supply chain management systems in the grocery industry that ties sales to buying, to inventory, to logistics, and to production
Planned Order Receipt
The quantity planned to be received at a future date
Net Material Requirements Plan
The result of adjusting gross requirements for inventory on hand and scheduled receipts
Planned Order Release
The scheduled date for an order to be released