Answer / Jai Lata

Material Requirement Planning (MRP) is a production planning and inventory control method used to plan and schedule the purchase, production, and issuance of materials needed for manufacturing products. The MRP system calculates when to order material based on the demand forecast, bill of materials, current stock levels, and lead times.nnThe MRP procedure consists of three main steps:
1. Master Production Schedule (MPS) planning: Planning the production schedule based on customer orders and sales forecasts.
2. Bill of Materials (BOM): Defining the raw materials, components, and assemblies required to manufacture a product.
3. MRP calculation: Calculating the material requirements needed for each product based on the MPS and BOM, considering current stock levels, lead times, and demand forecast.

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