Concepts and Logic of MRP
Material requirements planning (MRP) is a tool used in the inventory management of dependent components in manufacturing operations. All items listed in a bill of material (purchased, fabricated, or subassembled) can be controlled through the MRP system. Notice the use of the word can. Some items such as hardware or packaging may be more easily controlled through alternative methods such as two-bin or reorder point but would still be listed in the bill of material for purposes of product costing and understanding. Software systems allow the user to code such items as “non-MRP” just as end items are coded as “MPS” rather than MRP.
KeywordsLead Time Reorder Point Material Requirement Planning Plan Order Weekly Time Period
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