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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
However, despite availability of the Material Requirement Planning (MRP) introduced in 1970s, Manufacturing Resource Planning Systems (MRP-II) introduced in 1980s and the ERP, which came into the market a few years back, Pakistan's textile industry never implemented any of these systems.
My company previously implemented the ability to share material requirement planning (MRP) with suppliers and set up bonds to ensure that components are available.
* Level one entry-level functionality, with purchasing and inventory, customer order tracking and Material Requirement Planning (MRP) capabilities, it provides the core business processes that a manufacturer requires.
POM's material requirement planning database is DB-MRRWK1 [ILLUSTRATION FOR FIGURE 20 OMITTED].
"Material Requirement Planning" metamorphosed into "Manufacturing Requirement Planning, Two" but never became a butterfly because the emphasis was on information to control the factory, rather than to help run the factory.

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