Which documents are essential in Material Requirements Planning (MRP)?

In Material Requirements Planning (MRP), the primary documents that drive the planning and execution of materials are the purchase requisition and the planned order.

The purchase requisition serves as a request for goods and is generated when there is a need to procure materials. This document is pivotal as it indicates what materials are required, in what quantities, and by when they are needed. It ensures that there is a systematic approach to acquiring goods, ultimately influencing inventory levels and production schedules.

The planned order, on the other hand, is generated by the MRP process itself and represents a proposal for production or procurement. It provides specific details about what to produce, the quantity needed, and the scheduling for production. This document is vital for coordinating manufacturing operations, ensuring that raw materials are available when needed, and helping to avoid stockouts or excess inventory.

Together, these documents play a critical role in MRP by ensuring that the supply of materials aligns with production requirements. They help in achieving efficient inventory management and are central to planning activities within manufacturing environments.