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Glossary — ERP & Business SystemsOctober 24, 2026

What is MRP? Material Requirements Planning Explained

MRP (Material Requirements Planning) is the logic that calculates what materials and components a business needs to buy or manufacture, in what quantity, and by when — based on demand, bills of materials and current stock.

MRP is a core part of manufacturing and is usually a module within an ERP. It prevents both stockouts and overstock, and drives purchasing and production schedules automatically.

SBS implements MRP within Odoo and Dynamics 365 for manufacturers — bills of materials, work orders, procurement and scheduling — tailored to your production.

Frequently asked questions

What is MRP?

MRP (Material Requirements Planning) calculates what materials to buy or make, how much and when, based on demand, BOMs and stock.

What is the difference between MRP and ERP?

MRP focuses on materials and production planning; ERP is the broader suite that includes MRP plus finance, sales, HR and more.

Who needs MRP?

Manufacturers and assembly businesses that must plan purchasing and production against demand and bills of materials.

How does SBS implement MRP?

SBS implements MRP in Odoo and Dynamics 365 — BOMs, work orders, procurement and scheduling — tailored to your production.

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