Material Requirements Planning
The main objective of any manufacturing planning and control system is to have the right materials in the right quantities available at the right time to meet the demand for the firm’s products. The material requirements plan’s objective is to determine what components are needed to meet the master production schedule and, based on lead time, to calculate the periods when the components must be available. It must determine the following:
- What to order.
- How much to order.
- When to order.
- When to schedule delivery.