Introduction
Materials requirement planning (MRP) and master production schedule (MPS) are methods used in supply chain management. These techniques have several differences and are designed for different uses. This paper will compare the two procedures and prove that both are required for maximum production efficiency.
Comparison of Master Production Schedule vs. Materials Requirement Planning
Materials Requirement Planning
MPS is a document that shows the product type, the amount that will be produced, and the time when it will be produced. It is based on the forecasted demand, which defines the optimal production schedules (Johnsson & Mattson 2021). Thus, MPS tells companies how many products they will make and gives them the production schedules.
Master Production Schedule
MRP, on the other hand, calculates the number of raw materials required for the job. The MRP uses the information on the MPS and specifies the number of raw materials and components required using the Bill of Materials (BOM). Then, it will specify when the materials will be needed for production (Gardiner & Reefke 2019). In essence, MRP tells companies what materials they need to make the products listed on the MPS.
Differences in Application
While it is already known that MPS focuses on schedules and MRP focuses on materials, one more fundamental difference exists between them. The MPS is a medium-range plan based on forecasts, while the MRP gives a detailed short-range materials plan (Wisner et al., 2022).
For example, when a shoe manufacturer plans their production, they will list the number of shoes they will produce on the MPS and when they will be produced. Then, they will list the materials required for the shoes and when these materials will be needed in the MRP. Thus, the MRP is used for the task at hand, while the MPS is used for more strategic planning.
Conclusion
To summarize, the MRP and the MPS have several distinctions. Firstly, the MPS is focused on production schedules and the number of products the company can create. The MRP is designed to calculate the materials required for these products. Secondly, while the MPS is based on the demand forecasts of the products, the MRP is based on the MPS and the BOM. Thirdly, the MPS is a medium-range plan, while the MRP is a short-range plan. Thus, the two planning methods are different. However, most industries need to utilize both of them for increased efficiency.
References
Gardiner, D. & Reefke H. (2019). Operations management for business excellence: Building sustainable supply chains (4thEdition). Taylor & Francis Group.
Wisner, J. D., Tan, K. & Leong G. K. (2022). Principles of supply chain management: A balanced approach (6thEdition). Cengage Learning.
Johnsson, P. D. & Mattson S. (2021). Manufacturing planning and control (6th Edition). McGraw-Hill Education.