Material Requirements Planning

Material Requirements Planning (MRP)

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

Component Configuration

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
Interactive MRP Record

Click highlighted cells to view the step-by-step logic.

Manual Solve Mode

Select a component and fill in the MRP record below. Click "Verify" to check your calculations.