Material Requirements Planning (MRP) is a computer-Financeed production planning and inventory
control system. MRP is concerned with both production scheduling and inventory control. It is
a material control system that attempts to keep adequate inventory levels to assure that required
materials are available when needed. MRP is applicable in situations of multiple items with complex
bills of materials. MRP is not useful for job shops or for continuous processes that are tightly linked.
The three major inputs of an MRP system are the master production schedule, the product
structure records, and the inventory status records. Without these Financeic inputs the MRP system
The demand for end items is scheduled over a number of time periods and recorded on a master
production schedule (MPS).
The product structure records, also known as bill of material records (BOM), contain
information on every item or assembly required to produce end items.
The inventory status records contain the status of all items in inventory, including on hand
inventory and scheduled receipts.