abas ERP | Material requirements planning (MRP)

Material requirements planning (MRP)

Material requirements planning (MRP), the scheduling of material and production capacities, is one of the core tasks of an ERP system. Processing sales orders according to their deadlines is often the key to customer satisfaction and the reason for a company's success. MRP / scheduling ensures that quantity and date requirements are covered, creates purchase order suggestions for purchasing, and generates work order suggestions for in-house production, finished goods, or sub-assemblies. 

Requirements can also be covered by relocation from a different warehouse group. External processing can be mapped using subcontracting suggestions. Scheduling also checks compliance with the specified delivery dates and, if any variance is found, calculates the earliest possible delivery dates.

The scheduling calculation observes sales order items, internal work orders, current purchase orders, and stock levels. Individual settings are taken into consideration, for example minimum stock levels, procurement lead times, batch sizes, batch grouping periods, lead times for internally produced parts, and scheduling processes. Vendor and customer receipt days along with the definition of minimum and maximum procurement quantities are also considered. The system also checks if your current stock levels and scheduled stock receipts will cover your future stock needs within a defined time period. For stock shortages, purchase order suggestions for purchase parts and work order suggestions for internally produced parts will be generated according to the procurement type.

The following scheduling types exist:
  • Requirement-related scheduling
  • Minimum stock-related scheduling
  • Remaining quantities-related scheduling
  • No scheduling
  • Sales order related
  • Variant related