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MRP

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Latest revision as of 01:35, 22 August 2020

Material Requirements Planning (MRP) is the practice of determining the time phased requirements and replenishment of materials in manufacturing plant.

MRP calculates the material purchases or transfers (for materials, semi-finished goods) required to support customer orders, projected demand and inventory goals to meet Service Levels and performance goals.

MRP is a subset of Manufacturing Resources Planning (MRP-II).

Notes

Alternative names include: MRP-I.

Criticism of Material Requirements Planning is that it solely focuses on material requirements and therefore ignores capacity constraints in raw materials warehouses, transportation and manufacturing plants. Order Cycle Time Supply Chain Costs Cash Conversion Cycle

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Hierarchy

IDNameLevelx
MRP-IIManufacturing Resource Planning2MRP-II
MRPMaterial Requirements Planning3MRP

Process(es)

IDNameLevelx
PPlan1P
P2Plan Source2P2
P201Gather Sourcing Demand3P201
P202Gather Inventory & Schedule3P202
P203Calculate Sourcing Plan3P203
P204Publish Sourcing Plan3P204

Metric(s)

IDNameLevelx
RS1Order Cycle Time1RS1
CO1Supply Chain Costs1CO1
AE1Cash Conversion Cycle1AE1

Term(s)

IDNameClearx
MRP-IIManufacturing Resource PlanningMRP-II
Material Requirements Planning Manufacturing Resource Planning 0 3 MRP, Material Requirements Planning, Plan, Requirements, Material, MRP-1, MRP-I, Supply Chain The practice of determining the time phased requirements and replenishment of materials in manufacturing plant