Re: Definition for MRP

Posted by PQA on February 28, 2003 at 15:23:13:

In Reply to: Definition for MRP posted by Shirley Coates on February 28, 2003 at 15:22:04:

A methodology for defining the raw material requirements for a specific item, component, or sub-assembly ordered by a customer, or required by a business process.

MRP systems will usually define what is needed, when it is needed, and by having access to current inventories and pre-existing commitment of that inventory to other orders to other customers, will indicate what additional items need to be ordered to fulfill this order.

Some MRP software applications can automatically place those raw material orders to the preferred supplier by fax, e-mail, or EDI (Electronic Data Interchange). MRP has been mostly replaced by the super-set MRP II. MRP II has been replaced in some cases by the even more complex & comprehensive ERP (Enterprise Resource Management).

The basis of MRP is usually accomplished by a "one-to-many" relationship; linking one SKU (Stock Keeping Unit) to all the nuts, screws, metal, software, etc. that goes into that unit. This is usually defined by a hiearchial Bill of Materials (BOM) system.

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