MRP

Short for Materials Requirement Planning, MRP is a service or software that helps manage inventory, keeping it reasonably low without causing shortages. MRP ensures all materials required to produce a good are available when needed and the inventory costs are within the company's budget.

MRP components

The MRP system uses the following components to help keep everything running smoothly.

• BOM (bill of materials) - The complete list of the components required to assemble each product.
• MPS (master production schedule) - The plan for the time required for producing each product, staffing, and any bottlenecks.
• Inventory and orders - The completed products inventory and any open orders.

With an efficient MRP, a company can answer important questions like:

• How long it takes to produce a product?
• What items make up a product, and are they available?
• When do we need to restock a product's materials?

BOM, Business terms, Computer acronyms, CRM, ERP, Software, Software terms, TLA