What Is MRP System?

Definition: MRP (Material Requirements Planning) is a production planning and inventory control system that calculates what materials are needed, in what quantities, and when they are needed to fulfill manufacturing orders and customer demand.

MRP System Explained

Odoo MRP computes material requirements based on: demand forecasts, confirmed sales orders, current inventory levels, BOM (Bill of Materials) structures, lead times, and safety stock rules. It generates procurement proposals (purchase orders or manufacturing orders) to ensure materials are available when production needs them. Odoo MRP supports multi-level BOM explosions and work center capacity planning.

Related Terms

Related Integrations