Closed loop MRP,
Definition of Closed loop MRP:
Closed Loop Manufacturing Resource Planning (MRP) is a software system companies use for production planning and inventory control.
A manufacturing resource planning system that includes products that have been returned by retail stores, or products that did not meet the manufacturers quality control standards. This inventory control system matches the purchasing plans with the list of products currently on hand. This allows manufacturers to adjust future production plans based on current inventory.
The system contains an information feedback feature that enables plans to be continuously checked and adjusted. Closed Loop MRPs synchronize the purchasing or materials procurement plans with the master production schedule. Inputs to the system include a bio of materials, inventory status files, and master production schedules. The system feeds back information about completed manufacture and materials on hand into the MRP system, so that these production plans can be adjusted according to capacity and other requirements. The system is called a closed loop MRP because of its feedback feature, which is also referred to as "closing the loop.”.
How to use Closed loop MRP in a sentence?
- Closed loop MRP is a software system used for production planning and inventory control with a feedback feature that enables dynamic adjustments during the processes.
- Enterprise Resource Planning (ERP) systems and MRP II have supplanted closed loop MRP systems.
- It was developed during the 1970s as a successor to earlier open-loop materials requirements planning systems.
Meaning of Closed loop MRP & Closed loop MRP Definition