material requirement planning advantages and disadvantages

Material Requirement Planning

What is Material Requirement Planning (MRP)? Material Requirement Planning (MRP) is a system used for planning, production & inventory control. It integrates data of production schedules with inventory and BOM to calculate purchasing and shipping schedules for the materials that are required to build the final product. The three basic steps of MRP are:- Determine Quantity Requirements: Determine what quantity is on hand, in an open purchase order, planned for manufacturing, already committed to existing orders, and forecasted. These requirements are specific to each company and each...
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