Manufacturing

    MRP

    Material Requirements Planning. A system for calculating the materials and components needed to manufacture products.

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    Key Takeaways

    • MRP answers three questions: what to order, how much, and when based on demand, inventory, and lead times.
    • Odoo's MRP scheduler runs automatically, generating planned purchase and production orders from sales demand.
    • Accurate lead times and safety stock levels are critical inputs: garbage data produces useless MRP suggestions.

    MRP Inputs and Outputs

    MRP is only as good as its input data. The system requires:

    • Demand: Sales orders, sales forecasts, or minimum stock rules that define what is needed.
    • Bill of Materials: Product structures defining which components each product requires.
    • Inventory levels: Current on-hand stock and pending receipts for all materials.
    • Lead times: Vendor lead times (for purchasing) and manufacturing lead times (for production).

    MRP then generates: planned purchase orders (buy raw materials), planned manufacturing orders (produce sub-assemblies and finished goods), and scheduling recommendations (when to start each operation).

    Data Quality Warning

    Companies implementing MRP for the first time often discover their lead times are inaccurate and inventory counts are wrong. Run a full physical inventory count and verify vendor lead times before relying on MRP calculations.

    Frequently Asked Questions

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