What is MRP (Material Requirements Planning)?
- MRP (Material Requirements Planning)
- MRP is a production planning method that calculates what materials are needed, in what quantities, and when — based on demand from sales orders and the bill of materials.
How MRP Works
MRP starts with demand (sales orders or forecast), explodes the BOM to find all required components, subtracts on-hand stock and pending purchase orders, and generates procurement or production recommendations. The output is a list of what to buy and what to manufacture, with dates.
MRP in ERPNext
ERPNext's Production Plan is its MRP engine. It takes Sales Orders, fetches BOM requirements, checks current stock and pending POs, and creates Work Orders and Material Requests with one click. For advanced MRP with capacity constraints, the production scheduling module is used alongside.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
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