Question: This passge below require indept analysis and breakdown In order to differentiate between MRP and MPS- I'd like to note that, MRP plans items that
This passge below require indept analysis and breakdown
In order to differentiate between MRP and MPS- I'd like to note that, MRP plans items that have dependent demand. Dependent demand is passed along due to the need to produce a particular item. It is used to decide how much material is required to have the appropriate inventory on hand to keep the production schedule operating at maximum efficiency. (Insights, 2018) Id also like to note that, MPS plans items that have direct demand, or independent demand. With independent demand, the demand comes from sales orders, service orders, or forecasts, and the demand comes directly from customeror forecastedrequirements. It is the list that provides the timing of the production schedule and shows how much each machine can produce, how many shifts are used, etc. (2018) With that in mind it will be easier to provide examples as to how they are applied to supply chains:
MRP coordinates materials that are used to meet dependent demands and makes sure that products are available based on suggested quantities for customers. MPS puts focus on materials that a company has prioritized based on certain criteria such as optimization also using this knowledge for finished goods panning. (2018)
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
