SAP Business One - MRP (2)

Material requirements planning (referred to universally as MRP) is, in the most generic sense, a set of planning techniques that use bill-of-materials data, inventory data, and supply inputs from scheduled production and purchase orders, as well as demand inputs from actual and forecasted orders, to calculate material requirements for made or bought items. The output of an MRP run is a set of recommendations to reorder or produce materials as well as alerts about materials that will be past due. Based on the results of an MRP run, the arrival of materials can be accelerated and delays in production can be accommodated through schedule changes. MRP can also be used to maintain proper inventory levels of items purchased for resale.