The calculation rests on three inputs: demand, the bill of materials and stock. The result is proposed orders for purchasing and production. By default MRP assumes unlimited capacity; machine and labour constraints are handled separately through capacity planning.
How it affects your decision
An MRP proposal is only as accurate as the data that feeds it. If the bill of materials, lead times and stock records are not reliable, even the most advanced MRP will propose the wrong material at the wrong time. When choosing an ERP, what matters is less whether MRP exists than running a demo with your own product structure and seeing whether the result makes sense.
Where you will meet it
Related terms
What does this term mean in your project?
Talk to a consultant; let’s look at it together through your own processes.