Material requirements planning (MRP)
February 2nd, 2007
Material Requirements Planning (MRP) is a software based production planning and inventory control system used to manage manufacturing processes. Although it is not common nowadays, it is possible to conduct MRP by hand as well. An MRP system is intended to simultaneously meet 3 objectives:
- Ensure materials and products are available for production and delivery to customers.
- Maintain the lowest possible level of inventory.
- Plan manufacturing activities, delivery schedules and purchasing activities.
The major problem with MRP systems is the integrity of the data. If there are errors in the inventory data, the bill of material data or the master production schedule then the output will also be incorrect. Most vendors of this type of system recommend at least 98% data integrity for the system to give useful results.
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