Material requirements planning in hierarchical production planning systems

Abstract

Material requirements planning (MRP) is a way to develop the time phased material and other resource requirements to satisfy the needs of a master production schedule. Hierarchical production planning (HPP) is a framework for analysis and decision making in complex production environments. They are complementary approaches to the decision support system needs of multi-stage production systems. The hierarchical approach provides for efficient management review of proposed plans at corporate, plant, and shop levels while MRP provides a sound and detailed basis for understanding the implications of proposed plans and for executing the selected plan. The relationships between these two approaches are illustrated with an example application.

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