Subscribe to our blog:
How much do you know about MRP?Software & IT
How much do you know about MRP? Material requirements planning (MRP) is very commonly used in supply chain. Did you know that an IBM engineer created it after studying Toyota's lean manufacturing techniques? They are not the same, though. Tech Target said, "MRP is considered a 'push' system -- inventory needs are determined in advance, and goods produced to meet the forecasted need -- while lean is a 'pull' system in which nothing is made or purchased without evidence of actual -- not forecasted -- demand." MRP is very useful in supply chain for manufacturing, including inventory management and efficiency. Click the link to learn more!
What is material requirements planning (MRP)?
Orlicky's ideas spread rapidly throughout the manufacturing sector after the 1975 publication of his book, Material Requirements Planning: The New Way of Life in Production and Inventory Management, and by the early 1980s, there were hundreds of commercial and homegrown MRP software programs.MRP uses information from the bill of materials (a list of all the materials, subassemblies and other components needed to make a product, along with their quantities), inventory data and the master production schedule to calculate the required materials and when they will be needed during the manufacturing process.Read the article