What is Material Requirement Planning?


For any growing business enterprises it is important to have a reliable and user-friendly ERP system with integrated MRP function (Material Requirements Planning). Eresource ERP's Material Requirements Planning can organize, schedule and reschedule materials as far into the future as required. MRP in eresource can be generated directly against the Sales Order and Demand/Forecast Management and can also be generated against the Master Production schedule.

Eresource Manufacture Resource Planning (MRPII) is a production planning and inventory control system. An MRP integrates data from production schedules with that from inventory and the bill of materials (BOM) to calculate purchasing and shipping schedules for the parts or components required to build a product.

There are three primary functions of an MRP system.

The system helps to ensure that the appropriate materials are available for production and the necessary products are available for customers to avoid shortages.
MRP reduces waste by maintaining only the lowest possible materials and product levels in stock.
MRP system helps plan manufacturing functions, delivery schedules and purchasing.
When an MRP system is doing its work, it reduces material wastage and avoids product shortages. Data plays a important role in material requirements planning. The data fed into the system have to be accurate; otherwise, serious production and stock errors may occur.

Eresource ERP is designed to simplify and speed up the work processes of purchasing, inventory, and production managers, enabling them to plan more effectively. One of the most critical and time-consuming aspects of inventory management is managing the task of maintaining sufficient amounts of materials on hand at all times.

The MRP module allows for entry of monthly and weekly sales projections by warehouse for each manufactured item and monthly and weekly sales projections by customer. These estimates, combined with sales order information, can suggest when to purchase raw materials and more.

Eresource ERP's MRP gives you an instant picture of projected inventory investment levels, as well as projected new purchases in accordance with your plan. Projections can be made on any MRP cycle. This provides an added dimension of visibility for directing the planning focus on the most significant areas of your investment. This also helps you to validate a plan financially and make swift adjustments before committing your cash.

Eresource ERP's Material Requirements Planning or MRP assists you in getting material on hand when needed for production or sales. The four basic information provided by the eresource MRP module informs you :

(1) when to place an order
(2) how much quantity to be ordered
(3) who should be the supplier
(4) when the items to be delivered to you
The aim of the eresource ERP's Material Requirements Planning (MRP) document is to supply information that will enable the company to have enough inventory on hand to fulfill demand, available only when needed, at a quality level that meets specification, and at the lowest price. Eresource ERP's MRP module can provide the basic needs of keeping inventory levels low and fulfilling customer expectations for on time delivery.