Material Requirements Planning
MRP
(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.
(1999-02-16)
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