Material requirements planning (MRP1)

Material requirements planning (MRP1)

1) A system to support manufacturing and fabrication organizations by the timely release of production and purchase orders using the production plan for finished goods to determine the materials required to make the product.

Orders for dependent demand items are phased over time to ensure that the flow of raw materials and in-process inventories matches the production schedules for finished products. The three key inputs are:

1. The master production schedule.

2. Inventory status records.

3. Product structure records. (Source: ILT Supply-Chain Inventory Management SIG)

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.154 (288 p.)