Material Requirements Planning


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material requirements planning

[mə′tir·ē·əl ri′kwīr·məns ‚plan·iŋ]
(industrial engineering)
A formal computerized approach to inventory planning, manufacturing scheduling, supplier scheduling, and overall corporate planning. Abbreviated MRP.

Material Requirements Planning

(application)
(MRP) A system for effectively managing material requirements in a manufacturing process.

Information systems have long been an important part of the manufacturing environment. In the 1960s, manufacturers developed Material Requirements Planning (MRP). According to the American Production and Inventory Control Society, Inc. (APICS), MRP is a set of techniques that uses bill of material data, inventory data, and the master production schedule to calculate requirements for materials. It makes recommendations to reorder materials. Furthermore, because it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase. Time-phased MRP begins with the items listed on the Master Production Schedule and determines the quantity of all components and materials required to fabricate those items and the date that the components and material are required. Time-phased MRP is accomplished by exploding the bill of material, adjusting for inventory quantities on hand or on order and offsetting the net requirements by the appropriate lead times.

See also Manufacturer Resource Planning.
References in periodicals archive ?
In addition, with SAP HANA there is access to game-changing new processes such as multichannel material requirements planning or order allocation with the ability to simulate," said Lori Mitchell-Keller, global general manager, Consumer Industries, SAP.
com)-- Manufacturing companies often use a Material Requirements Planning (MRP) forecast as a basis for Sales and Operations Planning (S&OP).
In that condition, the main production planning, material requirements planning, capacity requirements planning and other plans of the planning system need to be calculated separately, and the Coordination of multi-level plans is completed manually.
Inventory and production data stored in Material Requirements Planning (MRP) systems can also be considered critical if loss of this data causes a severe factory shutdown.
It integrates material requirements planning (MRP), forecasting, purchasing, scheduling, and general ledger functions to help track customer orders through production and ensure that the right materials are available for each job.
ERP is a natural evolution from manufacturing resource planning (MRP II), which evolved from material requirements planning (MRP I).
Joseph facility, equipment installed included 5-axis CNC machine cells, overhead and gantry cranes, special tools and computer software for material requirements planning.
The first generation of the Materials Planning system was simply a Material Requirements Planning (MRP) system built around a bill-of-materials-processor (BOMP).
Other technologies that support customization include computer numerical control, computer-aided design, material requirements planning, and computer-aided manufacturing.
The inventory-management specialist could require a raft of related designations in production, material requirements planning, just-in-time delivery, cost accounting, activity-based costing and so on.
Accuracies of inventory counts, master production scheduling, material requirements planning, and bills of material have all improved substantially.

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