Material Requirement Planning - An overview

Material Requirements Planning (MRP) is a framework to assist organizations in making sure that the right amount of parts are available at the right time, considering the planned and projected demands and supplies. The “MRP Process Parameters” activity enables the user to define the key parameters for the MRP run.

MRP Process Parameters is an option setting screen which serves as one of the master screens to define the input parameters for a MRP Run. This screen gives the input for initiation as well as processing of a run. Various parameters that govern the MRP process are defined here like planning horizon, run frequency, etc. Also key parameters for demand - supply matching like lead time computation, supply reservation tolerance days, hard allocation threshold days are defined here.

Action parameters are the input parameters for the MRP actions. The MRP Action Parameters screen provides the input on how the action should be sequenced from creating a supply document to suggesting the user to create a supply document by MRP engine with respect to various part attributes like Part group, Part Category, Part Source. etc. The time & quantity fence attributes can be defined for restricting the action of MRP engine for a particular demand.

Getting familiar with the activities