materials requirement planning

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Materials requirement planning

Computer-based systems that plan backward from the production schedule to make purchases in order to manage inventory levels.

Materials Requirement Planning

An early computer system for managing inventory. The materials requirement planning created forecasts of future sales that helped businesses determine the materials they needed to have ready for sale at a given time. As other programs became more common, the materials requirement planning program was integrated into more sophisticated systems.

materials requirement planning (MRP)

a planning system for scheduling STOCK replenishment so as to ensure that adequate amounts of materials are available at all times thus enabling PRODUCTION to go ahead without interruption. Key features of MRP are the calculation of raw material and component requirements from the PRODUCTION SCHEDULES of the products in which the materials are to be embodied, and the time phasing of replenishment orders for materials so that they arrive in good time to avoid a stockout situation which would halt production. Thus, if production schedules indicate that stock of a particular material will need to be replenished in week 7 to avoid a stockout and the time it takes for the new stock to be delivered after the placement of the order is 2 weeks, then the order will need to be issued in week 5. See STOCK CONTROL, JUST-IN-TIME (JIT) SYSTEM, MANUFACTURING RESOURCE PLANNING, MATERIALS MANAGEMENT, MATERIALS FLOW MANAGEMENT, OPTIMIZED PRODUCTION TECHNOLOGY.
References in periodicals archive ?
Clearly defined processes across the company -- Online availability of accurate cost information -- Online inventory valuations -- Accurate Material Requirement Planning (MRP) -- Integrating Finance with its Operational Modules
0 of its Master Scheduling (M/S) and Material Requirement Planning (MRP) modules, also key parts of Macola's strategy to offer easy entry points to ERP.

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