MRP
Material requirements planning, or MRP, calculates the materials needed for planned production using demand, bills of materials, stock and supply dates. Manufacturing resource planning (MRP II) is a broader concept that also considers production resources.
A worked example
A practical example to make the concept clear.
| Step | Illustrative record and result |
|---|---|
| Starting record | Demand: make 5 tables. The approved bill needs 4 legs per table, so gross demand is 20 legs. |
| Change or calculation | Usable stock is 12 legs with no incoming supply or other commitments in this simplified example. |
| Meaning and exception | Net shortage: 20 − 12 = 8 legs. Planning must consider the supplier lead time and production date before proposing replenishment. |
Why it matters
The shortage is a planning result, not proof that production has started. A useful plan considers the required material date, usable stock, existing commitments and incoming supply.
Make it practical
Can production respond to a material shortage without losing the planned output and actual consumption record? Test the answer with the exact release and application package under consideration. Explore Datrylo applications.