Difference between revisions of "P2"

Latest revision as of 19:11, 12 July 2022

The collection of processes associated with developing a comprehensive plan to source materials, semi-finished products, finished products, and/or services to support the supply chain operations plan. This process determines net requirements, considering on-hand inventories, existing transfers, supplier contracts and existing delivery commitments from suppliers.

A requirements planning process is based on three dimensions:

• Determining demand (e.g. orders and forecasted orders) and demand dependencies (e.g. linearity of demand)
• On-hand inventory and scheduled receipts netting (e.g. scheduled deliveries by suppliers and factories)
• Time phasing of material receipts (e.g. supplier and inspection lead times)

Receiving and storage capacity considerations may be considered as part of time phasing.

Use Cases

• In a Make-to-Stock plant or warehouse: Purchase Order REQ calculation and creation
• In a manufacturing plant: Raw material requirements planning
• In distribution network: Merchandise, product replenishment calculation
• In Retail: Calculate the back room restocking schedule

Notes

Alternative names include: Distribution Requirements Plan (DRP), Material Requirements Plan (MRP), Procurement Planning. Plan Source is part of DRP-II and MRP-II. Perfect Order Ratio Orders On-time Ratio Orders In-full Ratio Order Cycle Time Planning Frequency Sourcing Cycle Time Supply Chain Costs Cost of Goods Sold Cash Conversion Cycle Days of Inventory Bill of Materials Planning BOM Forecast-to-Plan