MRP is material requirements planning that calculates what material, how much and on what date is needed to complete the products in the production plan on time. It does not only look at the current inventory quantity; it evaluates the bill of materials, the quantity to be produced, allocated inventory, pending purchase orders, safety stock and lead time together.
To compare the relationship of the material plan to software records in the MRP guide You can also examine the bill of materials, stock and date of need approach.
When should we receive the material before stopping production?
net need
Gross requirement is deducted from available stock and open orders that will arrive on time.
Order date
It goes back as far as the supply period from the date the material is required.
Order link
It is tracked which product, production order and bill of materials line the need arises from.
Five Basic Data for MRP Calculation
Production plan
How many units of which product will be produced and on what date?
bill of materials
How much of which ingredient is used for a product?
available stock
How much of the physical amount is not allocated for other tasks?
Open orders
Which material order will arrive before the required date?
lead time
How many days after the order is opened can the material be used?
If the bill of materials is incomplete or out of date, the MRP calculation cannot be accurate. Raw material, semi-finished product, variant and wastage connection in the bill of materials and bill of materials guide and review it.
How to Calculate Net Material Requirement?
Net requirement = Gross requirement + Target safety stock − Available stock − Open order arriving on time
If the result is below zero, there is no need for a new order. If lot size, minimum order quantity and packing multiple are to be applied, the result is additionally rounded.
500 products will be produced
- 2 A parts are used for each product.
- Gross need: 500 × 2 = 1,000 pieces.
- Available stock: 180 units.
- Open order to arrive on time: 300 units.
- Target safety stock: 100 units.
1.000 + 100 − 180 − 300
620 piecesPart A produces 620 net needs. If the lead time is 12 days, the order must be opened at least 12 days before the required date.
Calculate Your Net Material Requirement
Enter production quantity, BOM consumption, and current supply status for a single material.
The calculation shows the net requirement before lot size and minimum order quantity are applied.
How Does MRP Plan Calculate Time Backward?
Shipment
Delivery date to be given to the customer.
end of production
A margin is left for inspection and preparation for shipment.
material requirement
Since the first operation will start, the material must be ready
Order opening
Purchase is initiated based on a 12‑day lead time
If the production date is unrealistic based on capacity, accurate material calculation cannot save the delivery. Effect of machine, shift and cycle time on the plan In the production capacity calculation article and examine it.
Common Mistakes That Distort MRP Result
In stock but not available
If the quantity in quality control, reserved for another order, or in the faulty warehouse is deducted as free stock, the requirement will be underestimated.
Open order will arrive late
Dropping a purchase order that is to be delivered after the need date can leave production without material.
bill of materials is out of date
If the changed bill of materials, variant, waste rate or unit of measurement is not processed into the system, MRP recommends the wrong material.
Lead time is optimistic
When purchase suggestion is delayed because order confirmation, shipping, customs and inbound quality control are not accounted for.
What is the Difference Between MRP and ERP?
Calculates material and time requirements
It determines when and which material will be depleted for the production plan and how much should be supplied.
Establishes the company’s common record structure
It manages the MRP result in the same data structure as purchasing, stock, production order, cost, sales and finance processes.
MRP can be implemented as a separate calculation method; But when there are hundreds of products, multi-level bills of materials, and constantly changing orders, it becomes difficult to keep spreadsheets up to date. The bill of materials in Korgün ERP covers the scope of requirements analysis and production planning. KG Palaimon on production ERP page; Managing the purchasing needs with suppliers On page KG Tedarik and review it.
Frequently Asked Questions
What does MRP stand for?
It is an abbreviation for Material Requirements Planning. It is used as material requirements planning in Turkish.
Is MRP used only in manufacturing companies?
Its main area of use is production. Since it calculates the component need based on the bill of materials and production plan, it is not used in the same context in businesses that only buy and sell.
Does MRP prevent overstock?
Accurate data can reduce unnecessary and premature purchasing. However, wrong lead times, minimum order quantities or outdated inventory records can still create excess stock.
How often should MRP be run?
The order must be recalculated when stock, production plan or supply date changes. Depending on the order density of the business, work may be required daily or more than once during the day.
Manage your bill of materials, stock and purchasing records in the same plan
Let's evaluate together where and when the material need occurs in your current production plan.