Material Requirements Planning
Material Requirements Planning is all about getting the materials you need to the places you want, on time.
Done right, MRP keeps inventory low, yet sufficient – it avoids both overstock and lack.
Knowing the lead times of your material deliveries, and the capacity of your suppliers, will allow you to keep an optimal amount of stock.
Here’s how to plan:
Determine components from your Bill of Materials. - The BOM will show all parts of the product.
Forecast demand. - How much material will you need, based on the scale of production? When?
Check current stock levels. - What is in inventory at present?
Schedule production timeline. - Taking demand and stock levels into account, determine when your products will be made.
Purchase materials. - Create purchase orders based on your needs.
You might have to adjust, depending on the accuracy of your demand forecasting, and the reliability of your s
uppliers.
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