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    Material requirements planning (MRP) short guide on computations

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    The help provides step by step instructions on preparing MRP plan for various scenarios. It includes BoM, scenarios with no inventory and opening inventory. This guide covers how to derive gross requirements, net requirements, offsetting for the lead time and BoM explosion.

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    Material Requirements Planning (MRP) Guide
    This guide helps to determine gross and net requirements of materials considering
    - Bill of Materials (BoM)
    - Lead time for offsetting
    - Netting of available inventory

    Bill of Materials (BoM) - Preparation of BoM is the first important step in MRP plan generation. Following is description of BoM
    - Material A is a sub-assembly or finished good i.e. end product
    - A needs 1 unit of material B and 1 unit of material C
    - Material B needs 1 unit of material D and 2 units of material E
    - Materials A, C, D & E take 1 week
    - Material B needs 2 weeks

    The BoM is as shown below

    100 and 200 As are required in week 5 and 6, respectively.

    Assuming no inventory is available the MRP table and calculations are setup as shows below

    Step 1: Generate requirement of material A considering no available ...

    Solution Summary

    The expert examines material requirement planning for short guide on computations.