MRP: Material Requirements Planning

MRP in Manufacturing: Material Requirements Planning

An MRP in manufacturing stands for Material Requirements Planning. The MRP in manufacturing is a program that creates a method used for calculating the components and materials that are needed to construct a product.

A material requirements planning process can be thought of as a master production schedule, it is the central source that is used to inform operators of what is needed to be produced, how many units are needs and when those products should be manufactured. 

The material requirement planning process often consists of 3 main components being:

  1. Takes note of materials and components currently in the inventory that is on hand and readily available.
  2. The program identifies the additional inputs that are required for a seamless production process, creates a materials list for an easier ordering process
  3. Schedules the production process and the purchase of raw materials to keep manufacturing on schedule, not allowing delays