MRP (Material Requirements Planning)

MRP Materials Requirements Planning (MRP). MRP recommends purchase orders, transfers and work orders to balance supply and demand. looks at stock projections in relation to demands and generates appropriate recommendations.

After reading demands in MPS, use MRP to explode demands through the BOM A stock assembly and process costing system, which provides facilities to specify the structure of finished items in terms of sub-assemblies and components. levels and produce make or buy recommendations. MRP produces recommendations after considering:

• Product Manufactured setting.
• Supplier lead time The number of working days elapsing between placing an order for an item and taking delivery..
• BOM lead time.
• Stock levels.

Note: MRP does not consider alternative stock items in its calculations.

• The work in progress Work in progress (WIP) is a product's value as it moves through production. This is increased by issuing stock and decreased by completing works orders, returning or scrapping stock..
• On order quantities.
• Minimum levels.
• Batch sizing rules.
• Locations of stock components Raw materials used to manufacture finished goods..
• Whether version control is being used.

You can refine recommendations manually.

You can raise purchase orders and works orders from MRP. This ensures uninterrupted manufacture of the items listed on MPS.