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.
McGraw-Hill Dictionary of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.

Material Requirements Planning

(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.
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References in periodicals archive ?
Among their topics are the importance of flow, material requirements planning in the new normal, supply order generation and execution for the new normal, strategic inventory positioning, buffer adjustments, the impact of demand driven material requirements planning on the operational environment, metrics and analytics, the demand driven organization, and implications for technology.
Against the weakness of ERP system, some papers propose methods to improve the coordination between material requirements planning and capacity requirements planning, and to optimize the planning.
Chad Smith is the coauthor of the third edition of Orlicky's Material Requirements Planning and the coauthor of Demand Driven Performance--Using Smart Metrics.
The new software, which supports 300 to 400 items related to material requirements planning, has significantly reduced the purchase requisition cycle and eliminated accounting at individual store locations.
Material requirements planning (MRP) is a production planning and inventory control system used to manage manufacturing processes (Reid, 2002).
Tee added that focus was placed on rapid transfer of documentation into the material requirements planning system and production equipment.
"Understanding the whats and whys of ERP and Material Requirements Planning will make us better at managing our programs and achieving more reliable delivery schedules in the Logistics Modernization Program," he said.
Millennium Pressed Metal, which has been assisted by Business Link West Midlands, is now looking to make the most of this order boom by increasing its efficiency through the implementation of a new Trojan MRP (Material Requirements Planning) system.
Chapter 7 explores the evolution from legacy material requirements planning systems to the development of enterprise resource planning systems.
For example, the map in Figure 3 shows that the supply chain is driven by a classical Material Requirements Planning (MRP) system, with monthly planning buckets.
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.
* 15 -- Material Requirements Planning & Bills of Material

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