MRP & ERP

Material Requirements Planning (MRP)

A dependent demand technique that uses a BOM, inventory, expected receipts, and a master production schedule to determine material requirements

Bill of Material (BOM)

A listing of the components, their description, and the quantity of each required to make one unit of a product

Time Fences

A means for allowing a segment of the master schedule to be designated as "not to be rescheduled"

Load Report

A report for showing the resource requirements in a work centre for all work currently assigned there as well as all planned and expected orders

Gross Material Requirements Plan

A schedule that shows the total demand for an item (before subtraction of on-hand inventory and scheduled receipts) and when it must be ordered from suppliers, or when production must be started to meet its demand by a certain date

Material Requirements Planning II (MRP II)

A system that allows, with MRP in place, inventory data to be augmented by other resources available; in this case, MRP becomes material resource planning

Closed Loop MRP System

A system that provides feedback to the capacity plan, master production schedule, and production plan so planning can be kept valid at all times

Distribution Resource Planning (DRP)

A time-phased stock-replenishment plan for all levels of a distribution network

Master Production Schedule (MPS)

A timetable that specifies what is to be made and when

Enterprise Resource Planning (ERP)

An information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders

System Nervousness

Frequent changes in an MRP system

Lead Time

In purchasing systems, the time between recognition of the need for an order and receiving it; in production systems, it is the order, wait, queue, setup, and run times for each component

Efficient Customer Response (ECR)

Supply chain management systems in the grocery industry that ties sales to buying, to inventory, to logistics, and to production

Planned Order Receipt

The quantity planned to be received at a future date

Net Material Requirements Plan

The result of adjusting gross requirements for inventory on hand and scheduled receipts

Planned Order Release

The scheduled date for an order to be released