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MRPs

MRPs is an acronym used in several fields, and its meaning depends on the context. The two most common references are Material Requirements Planning (MRP) in manufacturing and Marginal Revenue Product (MRP) in economics. Other specialized uses exist but are less widespread.

Material Requirements Planning refers to a production planning and inventory control system that determines material needs

Marginal Revenue Product is an economic concept describing the additional revenue generated by employing one more

Other uses of MRPs are less common and typically clarified by context, including software suites or industry-specific

to
meet
a
planned
production
schedule.
Core
inputs
include
the
bill
of
materials,
the
current
inventory
status,
and
the
master
production
schedule.
The
process
“explodes”
the
BOM
to
calculate
quantities
and
timing
of
orders
for
components
and
raw
materials.
Outputs
typically
include
planned
orders,
release
notices,
and
rescheduling
suggestions.
MRP
has
evolved
into
Manufacturing
Resource
Planning
(MRPII)
and
modern
ERP
systems
that
link
production
planning
with
purchasing,
inventory,
and
capacity
planning.
unit
of
a
factor
input,
such
as
labor.
The
MRP
is
the
product
of
the
marginal
product
of
the
input
and
the
price
of
the
output.
It
helps
explain
how
employers
or
resource
owners
decide
how
much
input
to
hire
or
use.
MRP
depends
on
technology,
demand
for
the
product,
and
input
costs,
and
is
often
used
in
determining
wages
and
optimal
resource
allocation.
In
practice,
estimating
MRP
can
be
difficult
due
to
changing
output
prices,
productivity,
and
competition.
terminology.
When
encountering
the
acronym,
it
is
important
to
infer
the
intended
meaning
from
the
surrounding
topic.