Material Requirements Planning (MRP)

Material Requirements Planning (MRP) is the logical capability of computing what materials to buy or make, in what quantities, and by when, to satisfy a production schedule. It explodes the manufacturing BOM against forecasts and firm orders, nets against on-hand inventory and open POs, and respects lead times and lot-sizing rules to generate planned purchase requisitions and work orders.

What it covers

• BOM explosion of demand into dependent component requirements.
• Netting against inventory, open purchase orders, and scheduled receipts.
• Lead-time offsetting and lot-sizing (fixed, lot-for-lot, EOQ).
• Action messages — release, expedite, defer, or cancel orders.
• MRP II extensions — capacity, financial, and master-scheduling layers around classic MRP.

Relationships (see sidebar)

• Supports BOM Management, Manufacturing Execution, and Supplier Development.
• Depends on ERP — MRP is typically a module within an ERP suite.
• Consumes the released MBOM and effectivity data published from PLM.