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Vol 29 - No 04 - June 2003 The IOM Knowledge Bank Issue Number 1: Material Requirements Planning Materials Requirement Planning (MRP) A technique for calculating the quantity and due date of production and purchase orders needed to meet the master production schedule. Source: BS 5191 (new edition in press) ALSO KNOWN AS MRP I – though this is strictly speaking not correct. PURPOSE Material Requirements Planning (MRP) is a computer-based technique which plans : what to make or buy ; when to make or buy ; how much to make or buy. MRP works to minimise inventory levels needed to meet customer demands and master production schedules (independent and dependent demand). It can : Create supply orders ; Adjust supply orders ; Reschedule supply orders ; Cancel supply orders ; Recommend changes to supply orders and may do any or all of these depending on the circumstances. Today, MRP is normally a component of Enterprise Resource Planning (ERP) or Manufacturing Resource Planning (MRP II). Early examples had more limited links. Page number: 29 Word count: 2000 Related Topics: Material requirements planning
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