Yes, but what is MRP ?

Everyone working in an industry and using an ERP as part of their daily job would have heard the acronym MRP, right ?
So what is MRP ?

MRP is known to the manufacturing industry since the 1960‘s – most common, proven and robust production planning approach (due to its simplicity)

MRP stands for:

  • Manufacturing Resources Planning or
  • Material Requirements Planning

A computer modeling technique for analyzing and controlling complicated manufacturing operations.

When the manufacturing data has been collected (parts, assemblies, resources) the lead time and cost of every component can be predicted under any manufacturing conditions.

As soon as an order is received the workload on the manufacturing organization and the delivery time can be calculated.

MRP systems also keep track of customers, suppliers and accounting functions.

Inventory can be purchased and assemblies made “Just in Time”.

The records kept by an MRP system highlight inadequacies such as overloaded production centers and delays by suppliers.

The effect of new orders, changes in capacity, shortages, delays and a myriad of other disturbances are calculated and tracked with confidence.


Discover the wonders of MRP !