Material requirements planning (MRP/MRP-I),
Definition of Material requirements planning (MRP/MRP-I):
Computerized ordering and planning systems for the manufacturing and manufacturing industries use material receipt, inventory data and master production plans to design what materials will be needed, when and in what quantities. The requirements plan changes the order for dependent items (such as raw materials, components, parts) as needed so that the flow of substances can be adjusted and implemented under the production plan. It calculates and addresses the effects of hundreds of variables, such as order entry, change of various capabilities, overload production centers, reduction of suppliers and delays, as well as incorporation of financial data into the accounting system. Unlike only temporary inventory (production on demand system), MRP is a planning guidance system and, conversely, an advanced planning system (advanced scheduling system), a state-of-the-art scheduling system. See also Product Resource Planning (MRPII).
Meaning of Material requirements planning (MRP/MRP-I) & Material requirements planning (MRP/MRP-I) Definition