What is MRP (Material Requirements Planning)? Application module for APS
What is MRP?
The solution for planning raw material and material requirements
It fulfills the following objectives:
- Ensures the availability of raw materials and products to be delivered to customers
- Plans the main activities of the factory, namely: purchases, deliveries and production
- Maintains stocks of products and raw materials at the lowest level possible
Bringing benefits such as:
- Reducing costs with the supply and storage of goods
- Reducing or even eliminating waste from the production process
- Reducing the time dedicated to sourcing raw materials
How does an MRP module work?
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1. factory operations plan
– here are detailed both the quantities related to each product to be made, as well as the date on which it is necessary
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2. production recipe
– represents the list of raw materials, components, assemblies and subassemblies necessary to produce a finished product
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3. stock information
– this includes, in addition to data on available and already ordered stock, information such as the delivery interval from the supplier or the size of batches.
Based on all this information, the MRP module (of the APS software solution) automatically determines the net requirement of materials, raw materials, components, assemblies and subassemblies required for a certain predefined time interval. Furthermore, planned production orders are generated, authorizes their execution by issuing production orders and eventually cancels or revises certain previously established quantities that no longer correspond to the new planning.
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