Material requirements planning combine production planning, scheduling, and inventory control system which are applied to handle manufacturing processes. It is a computer-based production planning and inventory control system. MRP is useful for both production scheduling and inventory control.

It refers to a material control system to maintain sufficient inventory levels to ensure that required materials can be accessed when necessary. Though maximum MRP systems are software oriented, but MRP systems can also be operated manually.

Production managers get benefitted in scheduling and arranging orders for items of dependent demand. MRP performs backward from a production plan for finished goods to create requirements for components and raw materials.

An MRP system streamlines plan manufacturing functions, delivery schedules and purchasing. Data integrity is a great concern for efficient material requirements planning.

Given below, a detailed excel sheet that can be used to create material requirement planning by hand.

Download Material Requirement Planning Spreadsheet

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