Calculating Requirements

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Asprova MRP

Asprova MRP is calculated on the memory requirement, allocate lead time at a high speed. Can achieve material arrangement Just in Time, which is impossible in other MRP system.

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MRP glossary TOP > Material Planning > Calculating Requirements

Calculating Requirements

It is a function of Requirements Explosion, where how much quantity of an item is demanded is obtained by the calculation using the requirements of the upper-level item. The calculation is performed for dependent demand items, and it is done base on the requirements of the upper-level item and physical unit of the item.
The following formula is for calculating Requirements considering the Failure Rate of the item:

Requirements = the requirements of the upper-level item x physical unit x 1 / 1 - Failure Rate

In this formula, the requirements of the upper-level item is the order quantity of pre-explosion item, and by multiplying it by the physical unit set in product structure, the requirements of the child item can be obtained. In most of cases, Failure Rate is set in product structure.

Related term: Single Level Requirements Explosion

Reference：JIT Business Research Mr. Hirano Hiroyuki

Calculating Net Requirements | Material Planning | Calculating Variable Lead Time