Material Resource Planning

(MRP) A system for effectively managing material

requirements in a manufacturing process.

Information Systems have long been an important part of the

manufacturing environment. In the 1960s, manufacturers

developed Material Resource Planning (MRP). According to the

American Production and Inventory Control Society,

Inc. (APICS), MRP is a set of techniques that uses bill of

material data, inventory data, and the master production

schedule to calculate requirements for materials. It makes

recommendations to release replenishment orders for materials.

Furthermore, because it it time-phased, it makes

recommendations to reschedule open orders when due dates and

need dates are not in phase. Time-phased MRP begins with the

items listed on the Master Production Schedule and determines

the quantity of all components and materials required to

fabricate those items and the date that the components and

material are required. Time-phased MRP is accomplished by

exploding the bill of material, adjusting for inventory

quantities on hand or on order and offsetting the net

requirements by the appropriate lead times.

See also {Manufacturer Resource Planning}

(1999-02-16)