Raw Material Purchasing
Purchasing gets a prioritized, dated list of what to buy instead of reordering on gut feel.
Material Requirements Planning Software (MRP)
Calculate exactly what materials to buy or build and when based on demand, BOMs, lead times and current inventory.
The engine that turns demand into a materials plan
A quick terminology note: In US manufacturing, this module is called Material Requirements Planning (MRP), not "material requisition planning." A material requisition is a single internal request for stock; MRP is the planning engine that calculates net material needs across your entire product structure. Getting these right matters for hiring integrations and any APICS/ASCM-certified planner on your team.
MRP (material requirements planning system) takes your sales orders and forecasts, explodes them through the Bill of Materials, nets them against on-hand and on-order inventory and produces a time-phased plan of exactly what to buy and what to build and by when so purchasing and production aren't guessing or over-ordering "just in case."
- Demand netting against on-hand, on-order & allocated inventory.
- Multi-level BOM explosion for complex assemblies.
- Time-phased planning using lead times and lot sizing rules.
- Automatic generation of planned purchase & production orders.
- Exception messages for late, short or excess supply.
- Integration with Master Production Schedule (MPS) and Procurement.
Where it's used
Sub-Assembly Planning
Multi-level BOMs generate planned orders for every intermediate assembly automatically.
Safety Stock & Reorder Points
Critical items carry buffer stock calculated from actual usage and lead time variability.
Demand Spike Response
A large new order re-nets the entire plan and flags shortages immediately.
How we build it
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Let's build an MRP software plan your purchasing team can trust.
FAQs
What is a Material Requirements Planning (MRP) module?
A Material Requirements Planning (MRP) module helps manufacturers determine what materials are needed, how much to order and when they are required for production. It considers demand, inventory levels, BOMs and lead times to create accurate material plans and reduce manual planning. This helps purchasing and production teams coordinate material availability with upcoming production requirements.
How does MRP software help prevent material shortages?
MRP software compares upcoming production requirements with available inventory and expected incoming materials. It identifies potential shortages in advance and recommends when materials should be purchased or produced, helping manufacturers avoid production delays caused by missing components. Planners can act on these recommendations early and maintain a more reliable flow of materials to the production floor.
Can MRP calculate raw material requirements automatically?
Yes. MRP ERP systems automatically calculate material requirements based on production schedules, sales demand, inventory availability and Bill of Materials (BOM). It determines the quantity needed after considering existing stock and incoming supplies, reducing manual calculations for production planners. This gives teams a clearer view of what needs to be purchased or manufactured and when it will be required.
How does MRP work with Bill of Materials (BOM)?
MRP (material requirements planning) uses the BOM to understand the materials and components required to manufacture a product. It breaks down finished goods into their individual components and calculates the quantity and timing of requirements across multiple production levels. This helps planners identify dependent material requirements and ensure the necessary components are available before production begins.
Can MRP software manage changing production demand?
Yes. MRP software can recalculate material requirements when customer orders, forecasts, inventory levels or production schedules change. This allows planners to adjust purchasing and production decisions based on current requirements instead of relying on outdated plans. It also helps businesses respond more effectively when demand increases, decreases or production priorities shift.
Does MRP help reduce excess inventory?
MRP ERP systems help reduce excess inventory by aligning material purchases with actual production requirements and available stock. It considers factors such as demand, lead times, safety stock and open purchase orders to help businesses order the right quantities at the right time. This reduces unnecessary purchasing while ensuring critical materials are planned of production needs.
Can MRP support both purchasing and production planning?
Yes. MRP software can identify whether required items should be purchased from suppliers or produced internally. Based on planning rules, inventory, lead times and BOM requirements, it generates recommendations that help purchasing and production teams coordinate material availability. This creates a connected planning process for raw materials, components, subassemblies and finished products.
Is MRP suitable for small and mid-sized manufacturers?
MRP (material requirements planning) can benefit small and mid-sized manufacturers that manage multiple products, components, suppliers or production schedules. It replaces manual material planning with structured calculations and gives manufacturers better visibility into upcoming requirements, shortages and purchasing needs. As production complexity increases, MRP can also provide a more organized way to coordinate materials with changing customer demand and production plans.