What are Material Requirements Planning (MRP)?

Supply Chain & Logistics Management
, ,
#1

Steps of Material Requirements Planning (MRP)

The MRP process can be broken down into four basic steps:

  1. Estimating demand and the materials required to meet it. The initial step of the MRP process is determining customer demand and the requirements to meet it. Utilizing the bill of materials—which is simply a list of raw materials, assemblies, and components needed to manufacture an end product—MRP breaks down demand into specific raw materials and components.
  2. Check demand against inventory and allocate resources. This step involves checking demand against what you already have in inventory. The MRP then distributes resources accordingly. In other words, the MRP allocates inventory into the exact areas it is needed.
  3. Production scheduling. The next step in the process is simply to calculate the amount of time and labor required to complete manufacturing. A deadline is also provided.
  4. Monitor the process. The final step of the process is simply to monitor it for any issues. The MRP can automatically alert managers for any delays and even suggest contingency plans in order to meet build deadlines.
    So guys these were some quick tips that will help you out and how you guys can practically practice it for your brand or profile hope you all guys love this topic and will keep on learning and practicing it let see you all on my next topic.