MRP is a computer-based inventory management system that manufacturers use to plan production schedules and manage inventory levels. It works by taking the production schedule for finished goods and breaking it down into requirements for subassemblies, parts, and raw materials. MRP helps ensure needed materials and components are available on time by tracking inventory levels and scheduling production and purchases accordingly. The goal is to optimize inventory levels while meeting production needs.

2. Material requirements planning (MRP) is a system for
calculating the materials and components needed
to manufacture a product. It consists of three
primary steps: taking inventory of the materials and
components on hand, identifying which additional
ones are needed and then scheduling their
production or purchase.

3. Material requirements planning or MRP is a
computerized system that allows
manufacturers to plan, manage, and control
their inventories more efficiently. It, thus,
helps them schedule the manufacturing per
bills of materials and deliver the right product
at the right time and the best possible price.

4.  Material requirements planning (MRP) is a
computer-based inventory management
system designed to improve productivity for
businesses.
 Companies use material requirements-
planning systems to estimate quantities of
raw materials and schedule their deliveries.

6. MRP is designed to answer three questions:
What is needed?
How much is needed?
When is it needed?

7.  MRP works backward from a production plan for
finished goods, which is converted into a list of
requirements for the subassemblies, component
parts, and raw materials needed to produce the
final product within the established schedule.
 In other words, it's basically a system for trying
to figure out the materials and items needed to
manufacture a given product. MRP helps
manufacturers get a grasp of inventory
requirements while balancing both supply and
demand.

8. 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

10. 1. 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.
2. 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.

11. The data that must be considered in an MRP scheme include:
 Name of the final product that's being created:This is
sometimes called independent demand or Level "0" on BOM.
 What and when info: How much quantity is required to meet
demand?When is it needed?
 The shelf life of stored materials.
 Inventory status records: Records of net materials available for
use that are already in stock (on hand) and materials on order from
suppliers.
 Bills of materials: Details of the materials, components, and sub-
assemblies required to make each product.
 Planning data:This includes all the restraints and directions to
produce such items as routing, labor and machine standards,
quality and testing standards, lot sizing techniques, and other
inputs.

12. There are several advantages to the MRP process:
 Assurance that materials and components will be available when needed
 Minimized inventory levels and costs associated
 Optimized inventory management
 Reduced customer lead times
 Increased manufacturing efficiency
 Increased labor productivity
 Increased overall customer satisfaction
Of course, there are also disadvantages to the MRP process:
 Heavy reliance on input data accuracy (garbage in, garbage out)
 MRP systems can often be difficult and expensive to implement
 Lack of flexibility when it comes to the production schedule
 Introduces the temptation to hold more inventory than needed

13. MRP benefits a business in the following ways:
 Ensures that materials and components are
available when they're needed
 Inventory levels are optimized and associated costs
are minimized
 Manufacturing efficiency is improved significantly
 Customer satisfaction is increased due to reduced
lead times

14. The three basic inputs of an MRP system are the master production
schedule (MPS), inventory status file (ISF), and bill of materials
(BOM).
The MPS is simply the quantity and timing of all end goods to be
produced over a specific time period. MPS is estimated through
customer orders and demand forecasts.
The ISF contains important real-time information on a company's
inventory. It lets managers know what they have on hand, where
that inventory is, and the overall status of the inventory.
The BOM is a detailed list of raw materials, components, and
assemblies required to construct, manufacture or repair a product
or service.

17. MRP systems focus specifically on planning and controlling
how goods are assembled using multiple raw materials or
components by controlling inventory, component and the
manufacturing process.
Enterprise resource planning (ERP) systems are an offshoot
of MRP systems, spurred by businesses finding a need for
the same level of planning and oversight for other
operations such as payroll, finances and supplier
management. ERP systems plan for resources across the
entire organization, including: financial management,
order management, customer relationship management,
people, procurement, warehousing and fulfillment.

18. Material Requirements Planning (MRP)
Definition (investopedia.com)