Adding MRP/DRP functionality to Microsoft Navision (Master of Software Engineering)

Abstract

Estimating the correct materials to order for the production of finished goods has been a daunting task for many manufacturing industries. Questions such as 'what materials are needed', 'how much of each material is needed', and 'when it is needed' have been a challenge that each industry has to deal with. This is where Materials Requirements Planning (MRP) can come in handy. MRP is a system developed to handle the ordering and scheduling of inventories, such as raw materials and subcomponents, which will be used in the production of finished goods [1]. A MRP system is intended to simultaneously meet three objectives: (1) to ensure that materials and products are available for production and delivery to customers (what is needed), (2) to maintain the lowest possible level of inventory (how much is needed), and (3) to plan manufacturing activities, delivery schedules and purchasing activities (when is it needed) [1]. For industries that have multiple locations, Distribution Requirements Planning (DRP) is another handy tool. DRP is an extension of MRP. In the calculation of MRP, it takes into consideration unused raw materials and subcomponents from different locations within the industry. Raw materials and/or subcomponents are recommended to be transferred from one location to another to fill a need instead of ordering raw materials from suppliers. ORC Industries uses an Enterprise Resource Planning (ERP) system called Microsoft Navision. An ERP system is an integrated software solution used to manage an industry's resources (accounting, purchasing, inventory, etc.). Navision comes with stock MRP functionality but needs to be custom-tailored in order to meet the requirements of ORC Industries. It is therefore decided to develop a customized MRP/DRP system for ORC industries. This manuscript describes the development of the customized MRP/DRP system. It includes a forecasting module that attempts to predict the sales for a specified period, which will be used in the MRP/DRP calculation.