Materials Planning / MRP

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Glossary

work-in-progress

Inventory of partially completed products that are between raw materials and finished goods in a production process.

material requirements planning (MRP)

Material requirements planning (MRP) is a system and method for calculating, scheduling and managing material supply to meet a defined production plan.

WIP (Work in Progress)

WIP commonly refers to materials, parts, or units that have started production but are not yet finished goods.

MES vs ERP boundary

The practical and conceptual dividing line between MES functions on the shop floor and ERP functions at the enterprise level.

item master

An item master is the authoritative list of parts and materials with their core attributes used across ERP, MES, and supply chain systems.

Backflushing

Backflushing is an automated inventory booking method that issues and relieves components at the time of production completion, not at physical use.

production order

A production order is a formal instruction to manufacture a specified quantity of items under defined materials, routing, dates, and tracking data.

inventory item

A distinct, trackable material, component, kit, or product record used in inventory and execution systems such as ERP and MES.

inventory location

A defined place in a system where materials or products are recorded as stored and available, typically for issue, transfer, or shipment.

FAQ

Who sends the work order?

In regulated manufacturing, work orders are usually issued by planning or scheduling functions through an ERP, MES, or MRP system. The exact sender depends on how your plant is organized and integrated. Often they originate in ERP/MRP, are dispatched by MES or a planner, and must follow formal approval, revision control, and change processes.

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