Material Requirements Planning (MRP)

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In traditional manufacturing, Inventory based manufacturing did not work out, a next step was Material Requirements Planning or MRP. The idea is simply to predict your part production based on:

  • Your sales forecast
  • Your bill of materials

As an example. a bike has two wheels, a wheel has 48 spokes. If you know how much bikes you are going to sell, you know how how much wheels and how many spokes you need to create.