Independent Demand
- Demand unrelated to demand of other products usually end products and spare parts
- Their demand is usually forecast from past consumption and existing sales order
- Example includes demand for Cars, refrigerators etc
Dependent Demand
- Demand dependent upon the demand of other products
- Example, demand for tyres are dependent upon the demand for cars in case the company don’t sell the tyres and is a car manufacturer. Also, the raw materials and sub Assemblies required to manufacture the car directly depend upon the no. of cars to be produced
- Their requirement is derived from the delivery schedule of end item
Master production schedule (MPS)
- It identifies when and how much of each product is needed to satisfy the demand.
- It is selected in Oracle Apps for the items with independent demand that control critical resources
- MPS is the input in MRP
Material requirements planning(MRP)
- It is valid for those situations where we know the master schedule of end item and based upon that, we want to find the detailed schedule for sub-assemblies, raw materials used in the end product
- Detailed schedule means when to procure the raw materials accurately so as to avoid excessive /shortage inventory scenarios
- In Short, MRP is the tool for planning and control of manufacture inventories, raw materials, WIP, Sub-assemblies
- Selected in Oracle Apps for those items that are dependent items, raw materials
- The output of MRP simply tells us what is needed without considering any capacity constraints and other constraints and thus creating a need for its evolution
