Source : Free On-Line Dictionary of Computing

Material Requirements Planning
     
         (MRP) A system for effectively managing material
        requirements in a manufacturing process.
     
        Information systems have long been an important part of the
        manufacturing environment.  In the 1960s, manufacturers
        developed Material Requirements Planning (MRP).  According to
        the American Production and Inventory Control Society,
        Inc. (APICS), MRP is a set of techniques that uses bill of
        material data, inventory data, and the master production
        schedule to calculate requirements for materials.  It makes
        recommendations to reorder materials.  Furthermore, because it
        is time-phased, it makes recommendations to reschedule open
        orders when due dates and need dates are not in phase.
        Time-phased MRP begins with the items listed on the Master
        Production Schedule and determines the quantity of all
        components and materials required to fabricate those items and
        the date that the components and material are required.
        Time-phased MRP is accomplished by exploding the bill of
        material, adjusting for inventory quantities on hand or on
        order and offsetting the net requirements by the appropriate
        lead times.
     
        See also {Manufacturer Resource Planning}.
     
        (1999-02-16)