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MATERIAL
REQUIREMENT
PLAN SYSTEM

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MSF Material Requirement Plan (MRP) is a part of production order which has a list of the raw materials or components, quantities, time, and steps required to manage the production or assembly of finished goods.

When the planners plan the product to be produced, if the raw materials to be used are only procured and the production will be carried out, an appropriate MRP is created. However, sometimes the products to be produced are included in the MRP plan, the materials to be produced and become components, and the purchased raw materials are included in the MRP.

The shortest lead time to be created in the planning and the most optimal “routing” planning that will not create a bottleneck in the inclusion of the components to be produced in the “parent” product is the problem that planners should cope with.

MSF MRP helps to process a production order with sales order by turning various components or raw materials into a finished product by making use of machinery and labor. Also, MSF MRP allows enterprise to group individual sales items in stock to sell a ‘parent’ product composed of multiple components which are then issued from the inventory once the order is dispatched. These are for a fixed combination of items, but you’d use a sales order if the customer needs confirmation of each component or wants to alter quantities. MSF manufacturing planning module functions to creates a list of items brought together for sale at the same time and gives you the flexibility to change the quantities, swap and delete items to customize a sales order.

Once MSF MRP is done the purchase orders and production orders are created which will trigger the procurement cycle for the new components. Meanwhile the components are being procured the planner works on the shop floor routing details with the reference of MRP. Once the Purchased components have been procured then the Manufacturing Execution can be started. So, the Activities mentioned in the Shop Floor Routing is performed and the Product is built.

MSF also keeps material in reservation dedicated the respective job if stock quantity available. Or based on reorder planning, material purchase or making component function executes automatically, if quantity drops below minimum amount.