MRPbased

MRPbased refers to the use of material requirements planning (MRP) logic within manufacturing planning and control systems to determine material needs, quantities, and timing necessary to support a master production schedule. It is focused on coordinating inventory and production to meet demand while minimizing stock levels and production delays.

Key inputs for an MRPbased system include the master production schedule (MPS), which specifies what needs to be produced and when; the bill of materials (BOM), which breaks products into components and subassemblies; and the inventory status file, which records on-hand quantities and supplier lead times. The core outputs are planned orders and order releases for procurement or manufacturing, as well as exception messages when schedules cannot be met or when data accuracy is lacking. The system works by exploding the BOM to determine component requirements, comparing them against on-hand inventory, applying lead times, and generating time-phased net requirements that drive purchasing and production activities.

Origins of MRP trace to the 1960s, with early development led by Joseph Orlicky and adoption by IBM. The approach led to more advanced planning concepts such as MRP II (which adds capacity planning and shop floor control) and later ERP systems that integrate MRP with other business processes.

Benefits of an MRPbased approach include improved material control, reduced inventory, better schedule adherence, and more transparent planning. Limitations involve strict data accuracy requirements, sensitivity to forecast errors, and limited capacity planning without integration to broader manufacturing or enterprise systems. Successful implementation relies on accurate BOMs, reliable lead times, and disciplined data maintenance.