Material Requirements Planning (MRP) in NetSuite is a powerful tool designed to streamline manufacturing and inventory management by ensuring that materials and components are available for production and delivery while optimizing inventory levels. It helps businesses plan purchasing and production activities, maintain optimal stock levels, and meet customer demand efficiently. Below is an overview of how MRP works in NetSuite, its key features, setup requirements, and benefits.
Overview of MRP in NetSuite
NetSuite’s MRP module is part of its Advanced Manufacturing and Supply Chain Management capabilities. It uses real-time data to generate planning recommendations based on demand, supply, and inventory levels. MRP helps businesses forecast material needs, schedule production, and create purchase or work orders to ensure timely availability of goods without overstocking.
The MRP system considers various factors, such as:
- Demand: Sales orders, forecasts, and dependent demand from assemblies or kits.
- Supply: Purchase orders, work orders, transfer orders, and existing inventory.
- Lead Times: Vendor lead times, manufacturing lead times, and safety stock requirements.
- Bill of Materials (BOM): Multi-level BOMs for assemblies to determine component requirements.
- Inventory Levels: Current stock, safety stock, and reorder points across multiple locations or subsidiaries.
MRP Process:
