Start of Content Area
MRP procedure (PP)

Production Planning and Control (PP)

A procedure that specifies how planning is performed for a material.

MRP procedures are divided into two groups: MRP and consumption-based planning (reorder point).

MRP is based on future requirements. Assembly and component requirements for finished products produced in-house are calculated by exploding the bill of materials.

Consumption-based planning (reorder point) is based on historical data. Requirements are calculated using past consumption values.

End of Content Area