Introduction to master planning
An MRP system or module works to determine the need for material requirements and the organization’s capacity to meet the company’s goals. By measuring the level of complexity, we can distinguish different types of master planning.
MRP works tightly with the manufacturing area and can calculate item requirements to meet demand-based production goals. MRP II has a broad scope that considers the market demands and makes plans based on the company’s departments’ requirements. It also considers procurement, sales, QA, and finance.
Demand Driven Material Requirements Planning (DDMRP) is another type of master planning that upgrades the MRP II type by considering dynamic demands and having stock buffers to ensure inventory despite market fluctuations.
All these types help companies assess the following information:
- Production materials and resource capacities that are needed.
- Materials that are currently available...
