Operations Management / Supply Chain Management

Module 12: Material Requirements Planning (MRP) and ERP

Material Requirements Planning is directly linked to the output of Master Productions Scheduling Process.  The Master Production Schedule (MPS) is the “driver of Materials Requirements Planning and shows as the top-line “Gross Requirements” in the Material Requirements planning for finished items.

Material Requirements Planning (MRP) has the managerial objective of providing “the right part at the right time” to meet schedules for completed products.  The result of the Material Requirements Planning process provides a formal time-phased supply plan for each part number – raw materials, components, and finished products.  Capacity Requirements Planning validates the feasibility of the Material Requirements Planning process.