MRP Process

Determine Accurate Inventory and Purchasing to Fulfill Production Schedules

The purpose of the MRP process is to inform production managers how and when to source the raw materials or component parts needed to fulfill production orders. Using the master production schedule as its source of truth, the MRP process accounts for the order of operations for producing a good, and works backward to plan items and processes accordingly. Ultimately, the MRP process ensures optimal levels of dependent demand inventory to minimize waste and carrying costs, yet satisfy current and future demand.

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