MRP helps organizations to maintain low inventory levels and is used to plan manufacturing, purchasing and delivering activities. MRP makes recommendations to release replenishment orders for materials in order to efficiently manage supply and demand.
Abel’s implementation of MRP uses BOM and inventory data together with the Master Production Schedule to calculate time-phased requirements for materials. To achieve maximum efficiency, Abel’s MRP tracks changes to BOMs, sales budgets and inventory on hand at runtime and only recalculates where necessary. Doing this minimizes the large processing time that MRP can demand.
The outputs of Abel’s MRP process are:
• The quantity of all components and materials required to fabricate items
• The date the components and materials are required. Time-phased material requirements planning is accomplished by exploding the BOM, adjusting for inventory quantities on hand or on order, and offsetting the next requirements by the appropriate lead times
• Recommended purchase orders