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What is MRP?

What is MRP?

MRP (Material Requirements Planning) is an application module for APS – advanced planning and scheduling of manufacturing operations. The module allows you to plan purchases of raw materials while taking into account all current and future sales. Basically, MRP ensures the availability of the necessary materials for the production process because it answers the following questions: what, how much and when do we need it to ensure the optimal functioning of the plant?

The solution for planning required materials

achieves the following goals:

  • Ensures availability of raw materials and products to be delivered to customers
  • Plans the main activities of the plant: purchases, deliveries and production
  • Keeps raw materials stocks at the lowest possible level

bringing benefits such as:

  • Reducing the costs of supplying and storing goods
  • Reducing or even eliminating waste in the manufacturing process
  • Reducing time dedicated to raw materials supply

How does a MRP module work?

It retrieves information from three main sources:

  1. Master production schedule – detailing both the quantities and the dates for each product to be manufactured
  2. Bill of materials – the list of raw materials, components, assemblies and subassemblies required for a finished product
  3. Stock information – includes information such as supplier lead times or batch size, in addition to available and ordered stock data.
Ce este si ce inseamna MRP - Material Requirements Planning planificare productie

Based on this information, MRP automatically determines the net quantities of raw materials, components, assemblies and subassemblies required for a predefined time frame. Furthermore, planned production orders are generated, their execution is authorized by issuing the production orders and if needed, certain quantities previously set are canceled or revised if they no longer meet the new planning.

Find out more about the production planning system!
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