Glossary
What is MRP?
Material Requirements Planning
Definition
MRP — material requirements planning — calculates which materials are needed, in what quantity and by when, to carry out a production plan.
How MRP works
MRP takes three inputs:
- The production plan: which products, how many and by when
- The bill of materials (BOM): which components each product needs and in what quantity
- Stock and open orders: what is on hand and what is already on its way
Its output is a dated list of purchase proposals and work orders that respects each item’s lead time.
Example
A factory must deliver 400 air-conditioners by month end. Each needs one compressor; 380 are in stock and the lead time is ten days. MRP shows a shortage of 20 and proposes a purchase dated so the parts arrive in time.
MRP in Fidar
Material planning is designed into Fidar’s Manufacturing & MRP module, which is on the roadmap. See also ERP for manufacturing.
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