Material Requirements Planning
material requirements planning
[mə′tir·ē·əl ri′kwīr·məns ‚plan·iŋ]Material Requirements Planning
(application)Information systems have long been an important part of themanufacturing environment. In the 1960s, manufacturersdeveloped Material Requirements Planning (MRP). According tothe American Production and Inventory Control Society,Inc. (APICS), MRP is a set of techniques that uses bill ofmaterial data, inventory data, and the master productionschedule to calculate requirements for materials. It makesrecommendations to reorder materials. Furthermore, because itis time-phased, it makes recommendations to reschedule openorders when due dates and need dates are not in phase.Time-phased MRP begins with the items listed on the MasterProduction Schedule and determines the quantity of allcomponents and materials required to fabricate those items andthe date that the components and material are required.Time-phased MRP is accomplished by exploding the bill ofmaterial, adjusting for inventory quantities on hand or onorder and offsetting the net requirements by the appropriatelead times.
See also Manufacturer Resource Planning.