Material Requirements Planning (MRP)
The ABNERP currently have the MRP inside the production plan which is difficult for new users to understand and also it only uses sales order or material request data to generate the MRP.
Purpose
The main purpose of MRP is to ensure that the right materials are available at the right time, helping the company to avoid the overproduction and delays in delivery. To know how MRP works first needs to understand how demand planning works.
Demand Planning
We already had sales orders and material requests to generate demand planning. However, this only works for short-term MRP requirements and does not cover longer periods of time. To address this, we have added sales forecasting and delivery schedules to generate demand.
Sales Forecast
The users has to manually enter the forecasting data by calculating it outside the system.