Material Requirement

MRP is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP by hand as well

Objective is to ensure the availability of materials, components, and products for planned production and for customer delivery, maintain the lowest possible level of inventory

Term

Priorities

Capacity

Inventory

the right quantity

at the right time

Order the right part

Keep the date valid

Order with the right due date

an adequate tie to view future load

an accurate load

Plan for a complete load

Types of MRP

Master production schedule

Bill of material (BOM)

Inventory status records

Challenge in MRP

MRP applied in a rolling horizon basis

Timing of supply

timing of demand

quantity supply

quantity demanded