About Lesson
✅ 4.3. Material Requirement Planning (MRP)
Purpose: To calculate what materials are needed and when, to meet production goals.
Key Activities:
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Input BOM and demand into MRP system.
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Analyze stock on hand, work-in-progress (WIP), and open purchase orders.
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Generate purchase requisitions and planned orders.
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Consider minimum order quantities, lead times, and safety stock.
Outputs:
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Material requirement plan.
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Procurement and inventory schedules.
Best Practice:
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Run MRP at fixed intervals (e.g., weekly) and after major demand changes.