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Material Requirements Planning (MRP) is a systematic approach used in operations management to ensure that materials and products are available for production and delivery to customers. It involves planning manufacturing activities, delivery schedules, and purchasing activities. MRP is essentially a computer-based inventory management system designed to improve productivity by ensuring that the right materials are available at the right time, in the right quantity. The primary objective of MRP is to determine what materials are required, how much is required, and when it is required to fulfill the demand for finished goods. The system works by starting with the end item (finished goods) demand and using a process known as "explosion" to break down the components required to manufacture the item. These components are derived from the Bill of Materials (BOM), which is a detailed list of raw materials, sub-assemblies, and components necessary to manufacture a product. MRP systems take into account three key inputs: 1. Master Production Schedule (MPS) – This outlines what is to be produced, in what quantity, and when. 2. Bill of Materials (BOM) – This hierarchical structure outlines the components required to produce each item. 3. Inventory Records – This includes information about the current inventory levels, _______ _____ ___ _____ _____ _________ ____ ______ ______.
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