Material Requirements Planning definition 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