Material Requirements Planning (MRP)
MRP simulator to understand inventory, demand forecasting, and supply chain optimization
A Material Requirements Planning (MRP) simulator for a milk tea shop that demonstrates how inventory management, demand forecasting, and supply chain policies affect business performance.
For simpler simulations, go to Restaurant ERP
How It Works
This simulator models a milk tea shop with three key components:
Notes
Shortage does NOT affect net P/L. It is just there to visualize missed opportunities.
A positive P/L with great shortage is still a worthy business to run.
To avoid complicating the simulation, demand is not influenced by prices.
In general, shorter lead time, longer shelf life, higher restocking threshold should lead to higher revenue.
That said, storage costs are often neglected in practice. It is possible to make more sales with yet lower profitability.