What is material requirements planning?

How does manufacturing MRP work?

  • Identify present inventory
  • Raise buy orders for something not already in inventory
  • Analyze raw material availability timescales
  • Work out a manufacturing start date based on the requested delivery date

What data goes into an MRP system?

  • What products are on order, and the portions
  • Deadlines
  • Bills of materials (BoM) — the raw materials needed for every product
  • Purchase orders
  • Sales orders
  • Details of existing inventory levels
  • The shelf lifetime of the existing inventory
  • Materials on order from suppliers
  • Any recognized shortages of available materials
  • Labour availability
  • Forecasts for demand and supply, based on past data
  • Existing demand in the market

The benefits of MRP methods

Things to watch out for

What subsequent?

Author's Bio: 

Business solution-centric Odoo Consultant and IT professional with about 11+ years of experience spanning Odoo delivery, Sales, pre-sales, Odoo product development, Odoo business consulting, outsourcing & ADM services in leadership positions.

• Has headed Practices for Enterprise Solutions ( SAP, Baan & Odoo )

• Experience across domains likeSales and Marketing, Logistics, Manufacturing, Retail, Chemical, Automotive maped to Odoo

• Extensive experience in large program delivery & business process transformation consulting (Odoo Consultant) for multiple programs

• Demonstrated experience in designing new product & service offerings and executing global Go-To-Market strategies for new offerings for new market penetration

• Proven leadership skills with balanced focus on people, processes & technology

• Pioneered the use of ERP systems in various Processing Industry

• Worked as Process Heads of Marketing, Sales, Purchase, HR, ERP Project deliveries and also worked as Business Heads for many companies like IBM, JKT, Denave India, FCS and presently at Apagen