Materials Requirements Planning (MRP): Once net requirements have been calculated from gross needs and on-hand/receipts, what is the next planning step?

Introduction / Context:
In Materials Requirements Planning (MRP), planners convert the Master Production Schedule (MPS) and Bill of Materials (BOM) into time-phased material plans. After computing net requirements (gross requirements minus scheduled receipts and projected on-hand), planners must translate these figures into actionable schedules that align supply with demand across time buckets.

Given Data / Assumptions:

• Net requirements have already been computed.
• Lot sizing, lead times, and time-phasing are relevant.
• We are selecting the immediate planning action, not execution on the shop floor.

Concept / Approach:
MRP proceeds from net requirements to planned order receipts and planned order releases, which together form the production schedule for in-house parts and the purchasing schedule for procured items. This stage respects lot-sizing rules (for example, lot-for-lot, fixed order quantity) and offsets by lead time to determine when to release orders.

Step-by-Step Solution:
Compute net requirements by period.Apply lot-sizing to convert net requirements to planned order quantities.Offset by lead times to generate planned order releases (the production schedule).

Verification / Alternative check:
Standard MRP tables show columns for gross requirements → scheduled receipts → projected on-hand → net requirements → planned order receipts → planned order releases, confirming the scheduling step follows netting.

Why Other Options Are Wrong:

• Determine machine/manpower requirements: capacity requirements planning is a subsequent, complementary process.
• Calculate gross requirements: already done earlier.
• Start the production process: execution follows a finalized and released schedule, not immediately after netting.

Common Pitfalls:
Confusing material planning (what to make/buy and when) with capacity planning (can we make it) and actual execution.

Final Answer:
determine the production schedule