Material requirements planning (MRP)

Competency Group: Mechanical Engineering

Type: Software

Description: Material requirements planning (MRP) is a production planning and inventory control system used to manage manufacturing processes. These systems are in place so that a manufacturing facility will always have enough stock for the manufacturing process. The management of time and resources is pivotal to this process. Most MRP systems are software-based, however, it is possible to conduct MRP by hand as well. An MRP system is intended to simultaneously meet three objectives: (1) Ensure materials are available for production and products are available for delivery to customers; (2) Maintain the lowest possible level of inventory; (3) Plan manufacturing activities, delivery schedules and purchasing activities.

Citation for Description: Material requirements planning. (2011). Retrieved from Wikipedia, http://en.wikipedia.org/wiki/Material_requirements_planning

Advantages: Reduces risk of running out of needed components.

Limitations: Can become very cumbersome depending on complexity and availability of components and complexity of end product.

Regulations: Beasley, J.E. (n.d.). Operations Research Notes. Retrieved from http://people.brunel.ac.uk/~mastjjb/jeb/or/mrp.html

Target Audience: Engineering, Management, Production

Relevant to Universal Design: No

Stages and Steps: 7.1, 7.2, 7.3, 7.4, 7.5, 7.6, 7.7, 7.9

Free Resource: Rice, T. (2011). Production Planning and Scheduling by Spreadsheet: MRP. Retrieved from http://production-scheduling.com/downloads/mrp-asp/ 

Purchase Resource: Ptak, C. & Smith, C. (2011). Orlicky's Material Requirements Planning. New York, NY: McGraw-Hill. (Original work published 1975)

Purchase Resource: Tuppas. (2012). MRP Software. Retrieved from http://www.tuppas.com/MRP-Software/MRP-Software.htm