An overview of MRP

MRP is a computer-based information system designed to handle ordering and scheduling of dependent-demand inventories (eg raw materials, component parts, and subassemblies). A production plan for a specified number of finished products is translated into requirements for component parts and raw materials working backward form the due date, using lead times and other information to determine when and how much to order. Hence, requirements for end items generate requirements for lower-level components, which are broken down by planning periods (eg, weeks) so that ordering, fabrication, and a…