Material Requirements Planning
Material Requirements Planning (MRP) is the central computational engine of modern manufacturing. It is a time-phased information system that translates the Master Production Schedule (MPS) into precisely timed requirements for every subassembly, component, and raw material. By combining the MPS with the Bill of Materials (BOM) and current Inventory Records, MRP ensures materials are available exactly when needed for production, completely eliminating the need for excessive "just-in-case" safety stock.
The MRP Netting Logic
Gross Requirements
Total expected demand for an item or raw material in a specific time period. Derived from the MPS or parent items.
Scheduled Receipts
Open orders already placed with vendors or the factory floor that are scheduled to arrive at the beginning of the period.
Projected On Hand
Expected inventory on hand at the beginning of the period.
POH = Prev POH + Prev Receipts - Prev Gross Req
Net Requirements
The actual amount needed after accounting for inventory and arriving orders.
Net = Gross - POH - Sched Receipts
Configure the lot sizing rules and initial inventory for all components defined in your BOM Builder.
| Item (Level) | Lead Time | Lot Rule | Fixed Qty | Initial On-Hand |
|---|
Click highlighted cells to view the step-by-step logic.
Select a component and fill in the MRP record below. Click "Verify" to check your calculations.