When is an MRP triggered to re-plan a material?

An MRP, or Material Requirements Planning process, is triggered to re-plan material based on changes in demand and supply. Specifically, this occurs when there is a change in the quantity needed (demand) that affects the forecasts for material or when there are adjustments to a Purchase Requisition (PR) or Stock Transfer Order (STO).

The rationale behind this is that MRP systems are designed to ensure that materials are available for production and products are available for delivery to customers, minimizing stockouts and excessive inventory. Therefore, both a change in demand and any alterations to the quantity specified in a PR or STO necessitate a re-evaluation of material requirements to align inventory levels with actual needs.

This comprehensive mechanism allows for more accurate planning and helps maintain operational efficiency within the logistics and supply chain processes. Understanding these triggers is crucial for effective inventory and materials management in a unit supply environment.