MRP is a process that uses a bill of materials (BOM) to determine when and how much of each component is needed to manufacture a finished product based on demand. For example, to make 16 units of product A requires 16 units of component D, while 2 units of D are needed for each of products B and F. MRP also uses information from master production scheduling (MSP), which provides the demand for the finished product, in this case 50 units, to calculate the component requirements.

1. Getting to Know
Supply Chain
using Examples
Material Requirement Planning - MRP

2. MRP is basically ‘BOM explosion’
Important clues:
We need 16 D’s to make A. We need 2 D’s to make B and 2 D’s to make F

3. 50 comes from MSP
What we answer in MRP : When do we make and how much?

6. I now know
MRP