Material Requirements Planning (MRP) enables you to plan material requirements for a manufacturing or procurement process.
MRP calculates gross requirements for the highest Bill of Materials (BOM) level. It is based on sales orders, production orders, forecasts, and so on. It calculates gross requirements at the lowest BOM levels by carrying down net parent demands through the BOM structure. Dependent levels may have their own requirements based on sales orders and forecasts.
The results of the MRP run are recommendations that fulfill gross requirements by taking into consideration the existing inventory levels and the sources that you define in the MRP wizard run, such as existing purchase orders, production orders, purchase blanket agreements, inventory transfer requests and so on. For each item, the MRP run also takes into account defined planning rules for Order Multiple, Order Interval, Minimum Order Quantity, Lead Time, and Tolerance Days.
Recommendations are back-scheduled by the defined lead time to arrive at the requirement dates for their own components.
Click here to read the full PDF document ‘How to Configure and Use MRP in SAP Business One 9.0’.
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