Material Requirements Planning (MRP)

Manufacturing

Definition

A method used for production planning, scheduling, and inventory control.

Detailed Description

Material Requirements Planning (MRP) is a core production planning and inventory management system used to manage manufacturing processes. MRP ensures that materials and components are available for production and products are available for delivery to customers. It helps in maintaining the lowest possible level of inventory by determining what is needed, how much is needed, and when it is needed. The system uses information from the production schedule, inventory data, and bill of materials to calculate material requirements and scheduling, ultimately streamlining production processes and improving supply chain efficiency.

Key Features

Bill of Materials (BOM) management
Demand forecasting
Inventory tracking
Production scheduling
Supply chain coordination

Common Modules

Bill of Materials (BOM)

Manages the list of raw materials, components, and instructions required to manufacture, build or repair products.

Inventory Management

Tracks and manages components and materials inventory to ensure optimal stocking levels.

Production Planning

Helps plan and schedule production activities to meet demand efficiently.

Popular Implementations

Oracle MRP Cloud

Oracle's cloud-based MRP system offers capabilities for managing manufacturing processes, optimizing inventory, and enhancing virtually end-to-end supply chain management.

SAP MRP Implementation

SAP's MRP module provides toolsets for automating procurement processes, ensuring material availability, and coordinating production planning activities.