Material Requirements Planning (MRP)

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Material Requirements Planning is best defined by The Apics Dictionary which is noted below.  A set of techniques that uses the bill of material data, inventory data and the master production schedule to calculate requirements for materials.

It makes further recommendations to release replenishment orders for materials.  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 begins with the items listed in the MPS and determines:

1. The quantity of all components and materials required to fabricate those items.
2. The date that the components and materials are required.

It 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.  
References:

• Apics Dictionary

Challenge

• Do you use an MRP system?  If so, what are the benefits?  Share your thoughts in the comments section below and receive a coupon to one of Lean Strategies International LLC's courses.

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