Requirements Planning

       The Requirements Planning system (MRP) is the primary tool for
       creating and monitoring the production and inventory control
       plan.  Utilizing data concerning product structures, lead times,
       open orders, and firm planned orders, MRP creates a time-phased
       picture of future requirements and plans order actions to satisfy
       those demands.

       The release of replenishment orders are planned for the proper
       points in time so that materials arrive in stock when needed, and
       once they are released, the open orders are continuously
       monitored to insure their continued validity with regard to
       changing production and inventory conditions.

       A requirements planning inquiry report is available in CRT
       display or printed form.  This report lists both summary and
       detail planning information, pegging information to show the
       origin of detail requirements, and exception notices to indicate
       areas where actions such as order release, expediting, etc. are
       required in order to execute the plan.

       The operational objectives of MRP include reduced inventory
       investment (excess materials not procured in advance of actual
       need), better direct labor utilization (reduction of time lost
       due to material shortage), reduced expediting costs (potential
       problems highlighted while there is still time to react), and the
       introduction of a valid plan of operations for all related
       departments.

       For the above mentioned reasons, the implementation of an
       effective MRP-based production and Inventory Control system is
       known to have a positive effect on profitability.

       Requirements Planning functions:
               File maintenance functions
               Requirements planning inquiry
               Net change application
               Schedule regeneration
               Vendor negotiation report
               Production category report
               Planning workbench
               System management