MRP procedure

Production Planning and Control (PP)

Procedure which specifies how planning is carried out for a material.

MRP procedures are subdivided into two main groups: MRP and consumption-based planning (reorder point).

MRP is based on future requirements. Assembly and component requirements for finished products produced in-house are calculated by exploding the bill of materials.

Consumption-based planning (reorder point) is based on historical data. Requirements are calculated using past consumption values.