Glossary
What Is MRP (Material Requirements Planning)?
Clear definition, a shop-floor example, related terms and the FOS modules that put it into practice.
Definitions · examples · module links
Answer
What is MRP in manufacturing ERP?
Material Requirements Planning (MRP) explodes demand from sales orders or forecasts against the active BOM, nets that demand against on-hand stock and open supply, then proposes purchase requisitions and work orders for shortages. MRP is a planning engine — it does not replace shop-floor execution or vendor negotiation.
Manufacturing example
An order for six control panels explodes a multi-level BOM. MRP finds breakers in stock, flags a long-lead PLC as short, raises a purchase requisition, and proposes work orders for enclosure fabrication and final assembly with dates planners can challenge before release.
Inputs
Demand (orders/forecast), BOM revisions, stock, open POs and work orders, lead times when maintained.
Outputs
Net requirements, suggested purchases, suggested work orders, shortage visibility.
Related terms
BOM, Work order, purchase requisition, safety stock.
FOS modules
See the term on your shop floor.
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Explore related topics
Does MRP replace the production schedule?
No. MRP proposes material and work-order demand. Planners still release and sequence work against capacity and priorities.
What does MRP need to be useful?
Reliable BOMs, stock, open supply and demand dates. Garbage masters produce garbage proposals.
Which FOS module runs MRP?
Planning & MRP — /modules/planning-mrp — working from BOM structures used in production.
Can MRP raise purchase and work orders?
MRP proposes shortages as purchase requisitions and work orders for planners to review and release per your controls.
Related glossary terms?
See /glossary/bom, /glossary/work-order and /glossary/wip.