Sunday 8 July 2012

Difference between MRP and Consumption Planning

MRP: Elements planned for MRP are sales orders, planned independent requirements, and reservations and so on. It is useful for planning of finished goods and important assembly groups such as components (A materials).
Consumption based MRP: It is generally based on materials previous consumption. External orders like sales orders; planned independent requirements and reservations are generally not relevant to planning. But these are shown in current stock/requirement list to let the material controller know of the requirements. This is normally used in areas without in-house production or manufacturing, for B and C type materials and operating supplies.


MRP Procedure
                                                                        /
                                                                        /
                                                ----------------------------------------
                                                /                                                  /
                        Consumption Based                                        MRP
                                    /
                        --------------------------------------------------------
                        /                                   /                                   /          
            Re-order pt                  Forecast Based            Time Phased
            Procedure                          MRP                             MRP
                        /
                     ---------------------------------------------------
                        /                                                           /
Manual Re-order Pt Planning            Automatic re-order pt planning

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