Material Requirements Planning (MRP)

Material Requirements Planning (MRP): A computerized system typically used to determine the quantity and timing requirements for delivery and production of items. Using MRP specifically to schedule production at processes in a value stream results in Push production, because any predetermined schedule is only an estimate of what the next process will actually need. Manufacturing Resource Planning (often called MRPII) expands MRP to include capacity planning, a finance interface to translate operations planning into financial terms, and a simulation tool to assess alternative production plans.

– Institute of Operational Excellence

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