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Formulas of Revised MRP

Authors: Bregni, A; D'Avino, M; De Simone, V; SCHIRALDI, MASSIMILIANO MARIA;

Formulas of Revised MRP

Abstract

Information sharing among supply chain echelons is now an acquired result. As a consequence, most of the traditional techniques and procedures in production management must be revised and updated, exploiting the opportunities provided by new technologies. This paper presents an improved version of Material Requirement Planning procedure, which assumes information sharing capabilities and permits the creation of new business opportunities. In Orlicky's MRP, orders are computed considering the parent items gross requirements. On the contrary, here the order release procedure related to a certain item is computed both by exploiting all the information sharing advantages and by introducing a drastic innovation to the main process functioning. As a result, the proposed algorithm copes better with demand uncertainty, lowers the system nervousness and also removes the need for continuous forecast adjustments, thereby improving the ease in managing the material flow, allowing the development of new forms of collaboration among different supply chain partners and the creation of new business networks. The algorithm is presented in formulas to describe in detail each procedure step and calculations.

Countries
Italy, Croatia, Italy
Keywords

Organizational Behavior and Human Resource Management, 670, MRP; Inventory Control; Lot Sizing; Supply Chain Management; Order Release Nervousness, MRP, Supply Chain Management, Management Science and Operations Research, HD28-70, Lot Sizing, Order Release Nervousness, Settore ING-IND/35 - INGEGNERIA ECONOMICO-GESTIONALE, Settore ING-IND/17 - IMPIANTI INDUSTRIALI MECCANICI, Management. Industrial management, Inventory Control

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    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
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    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
5
Average
Average
Average
Green
gold