Materials Requirements Planning (MRP) is a production planning and inventory control system that translates a master production schedule into detailed plans for raw materials and components needed for production. MRP helps reduce inventory levels, production lead times, and ensures material availability, thus enhancing customer satisfaction. In the apparel and textile industry, MRP and ERP address complexities and the need for efficiency by minimizing waste, controlling costs, and improving resource utilization.

1. What is MRP?
 Materials requirements planning, referred to by the initials MRP, is a technique which assists a company
in the detailed planning of its production. For example, the master production schedule sets out an
aggregate plan for production. MRP translates that aggregate plan into an extremely detailed plan
 It is a planning technique which converts master production schedule of end products into detailed
schedule for raw materials and parts used in those end Product.
 MRP is a means for determining the number of parts, components, and materials needed to produce a
product
 MRP is a production planning, scheduling, and inventory control system used to manage manufacturing
processes

2. Objectives of MRP
Inventory reduction:
 Determines how many components are needed and when in order to meet MPS
Reduction in production and delivery lead times : It helps to meet delivery
 deadlines by coordinating inventories, procurement & production decision
Realistic commitments : Improves customer satisfaction.
 Ensure materials are available for production and products are available for delivery to customers.
 Maintain the lowest possible material and product levels in store
 Plan manufacturing activities, delivery schedules and purchasing activities
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3. Functions of MRP
The basic functions of an MRP system include:
 Inventory control, bill of material processing, and elementary scheduling.
 MRP helps organizations to maintain low inventory levels.
Companies need to control the types and quantities of materials they purchase, plan which products are to be
produced and in what quantities and ensure that they are able to meet current and future customer demand, all
at the lowest possible cost.
Making a bad decision in any of these areas will make the company lose money.
Inputs to MRP
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4. Benefits of MRP

5. Why MRP and ERP in Apparel or Textile industry?
 The Apparel and Textile industry is really complex.
 Apparel and textile industry sees a lot of variation every minute.
 With introduction of new production systems like Lean and Modular which have been successful in
Automotive, Apparel and Textile industry also got into the trend of same.

6. Role of ERP and MRP in apparel industry
 ERP and MRP has been in Apparel and Textile industry for quite a long time.
 The need of ERP came when industry required smarter way of working and reducing data redundancy.
 focus on reducing Work In Progress and Waste and Increasing initiative on operator training.
 To support manufacturing system many Solutions to Apparel and Textile Industry are being proposed;
right from Material Handling, Material tracking to ERP.
 As the competition is increasing and margins and timelines are being reduced, people in Apparel and
Textile Industry have started realizing that need for cost control and utilizing the Enterprise wide
resources to the maximum have become essential.
 ERP comes as a rescue to all these issues.
 ERP in apparel industry includes: sales and marketing, shop floor control…

7. Innnovation in Retailing
Some modern innovations in retail:
 Modern retail businesses such as malls, specialty stores, and hypermarkets are using micro development
and contemporary technology to increase customers’ shopping experience and in turn generate business
revenue.
 Around the year 2000, online retail startups started changing the face of retail businesses around the
world.
 Social media websites such as Facebook changed consumer behavior as well as made retailers sweat out
to take the benefits and develop their brands.
 Modern e-commerce facilities enable faster transactions and allow purchase on a simple 30-day credit
facility.
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8. Payment
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9. Delivery
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10. Experience
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