Material Requirement Planning (MRP)
Material Requirement Planning (MRP) is a core manufacturing function that ensures materials are available for production and products are available for delivery. It calculates what is needed, how much is needed, and when it is needed based on the demand forecasts, production schedules, and current inventory levels.
Key Features
- Automatic generation of purchase or production requisitions
- Multi-level Bill of Material (BoM) explosion
- Date-based planning aligned with lead times
- Integration with sales orders, forecasts, and inventory
- Considers stock on hand, open orders, and safety stock
- Export or auto-generate procurement & production orders
Key Benefits
- Avoids stockouts and overstocking
- Improves on-time delivery through proactive planning
- Reduces inventory carrying costs
- Enhances visibility across the supply chain
- Enables tight coordination between procurement, production, and sales