A system to support manufacturing and fabrication organisations by the timely release of production and purchase orders using the finished goods production plan to determine the materials required to make the product.
The process that uses the MPS as demand, explodes the bill of material for specified MPS items, nets those requirements against on-hand inventory and existing open orders, and recommends placing new production and purchase orders and changes to existing orders based on parameters that consider safety stock levels, lot sizes and lead times. It is based on the idea of dependent demand (demand for an item is due to its usage in other items) and starts at the highest level in the bill of material, stopping at the first level where the quantity of inventory plus incoming receipts is adequate to meet demand and it is not necessary to send a requirement to the next lower level. While sometimes considered complex due to many levels in the bill of material or a large number of items, MRP in general is just a calculator and depends completely on the accuracy of the MPS, bills of material and order date and quantity information to be useful.
A planning technique which uses material bills, open order data, stock data and master production schedule (MPS) data to calculate the material required as well as when to order it. Originally, it was therefore mainly used to control and order stocks. Today, however, it is above all a method applied to control and maintain due dates on orders. This is due to the fact that the method not only makes recommendations when to release replenishment orders but also re-plans open orders when due orders are not in schedule. The method itself is a two-step logical operation, which is repeated at each production level and starts with the manufactured product: Future stocks are calculated from the present stock and known future issues. Bills of materials serve to compute lower level requirements.
A system that dissects products into the materials and parts necessary for purchasing, inventorying, and priority-planning purposes.
A production schedule which organizes the placement of materials where and when they are required.
A software application that uses bill of material, routing, inventory, work order, sales order, purchase order, transfer order, and other information to recommend purchase orders, transfers, and work orders to balance supply and demand. MRP has been extended beyond traditional manufacturing environments to help distributors and service organizations manage their inventories and purchases.
Abbreviation: MRP-I An inventory and purchasing planning system that integrates product components, lead times and deadlines.
Critical manufacturing software application that uses Bill of Material, inventory, work order, purchase order and other relevant information to optimize product supply and demand.
A set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials. It makes recommendations to release replenishment orders for material. Further, because it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase. Time-phased MRP begins with the items listed on the MPS and determines (1) the quantity of all components and materials required to fabricate those items and (2) the date that the components and material are required. Time-phased MRP is accomplished by exploding the bill of material, adjusting for inventory quantities on hand or on order, and offsetting the net requirements by the appropriate lead times.
A computer-assisted method of managing production inventory.
Material Requirements Planning (MRP) is a software based production planning and inventory control system used to manage manufacturing processes. Although it is not common nowadays, it is possible to conduct MRP by hand as well.