MRP

How it is used

Built into most ERP systems. Planners 'run MRP', often every night, and get purchase and production proposals. MRP results are only as good as the master data, such as lead times and bills of materials. MRP II (manufacturing resource planning) is a broader concept.

Example sentences

1. MRP suggested ordering 2,000 screws, but we already have plenty in the other warehouse.

2. Because the lead times in the system are wrong, MRP keeps creating late orders.

Common collocations

• run MRP
• MRP run
• MRP system
• MRP proposal
• MRP II

Related terms

• demand planningThe process of predicting future demand and agreeing on one demand plan that the company then uses to plan purchasing, production and stock.
• reorder pointThe stock level at which a new order should be placed, calculated so that the new goods arrive before the existing stock runs out.
• lead timeThe time between placing an order or starting a process and receiving the finished result, for example from sending a purchase order to the goods arriving.
• purchase orderAn official document a buyer sends to a supplier to order goods or services, listing the items, quantities, prices and delivery terms.
• S&OPShort for sales and operations planning: a regular, usually monthly, process in which sales, operations, supply chain and finance agree one plan that balances demand and supply.

This word in other fields

The same English word can have a different meaning in another field:

• MRP · Industrial Engineering & Manufacturing

More terms: Demand Planning

• demand forecasting
• bullwhip effect
• just-in-time