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Essential features of MRP software to look out for

Similar to ERP, Material Requirements Planning or MRP is one of the most important aspects of manufacturing. It is a way for manufacturers to connect their inventory forecasting with their accounting department. It is required to streamline the process of manufacturing right from raw materials to the finished products. For efficient streamlining, an MRP software has multiple features. They are:

Production control
Inventory control
Cost reporting
Scheduling
Bills of material
Capacity planning
Estimation
Warehouse management
Accounts payable
Change control
Sales analysis
Purchase ledger

However, there are certain features of a manufacturer software that are more in demand than others.

Demand prediction
Forecasting demand for outgoing inventory is an essential factor of increasing profits of a manufacturing business. Manufacturing too less will cause a production backlog, whereas overdoing it will lead to an excess of finished products occupying too much of inventory space. This is why demand prediction is one of the most in-demand features of an MRP software. With this, a manufacturing company can easily predict with accuracy how many orders are required to be managed. Most manufacturer’s software has demand forecasting capability with the following features: historical data gathering, generating forecasts based on the data, and authorization of the forecast.
Production planning
An MRP software automates and creates finite schedules for the completion of manufacturing jobs. After determining the required inventory, the software will plan production by determining lead ties, production times, and the overall project time. It takes into account the purchase and procurement of materials and supplies required for the manufacturing process. High volume companies usually benefit from this feature since there is less variance in their overall demand for finished goods. A routine schedule enables complete utilization of the production line, ensuring maximum output. Most MRP software allowS manufacturers to fine tune their production schedule using the production planning feature to get the best out of their manufacturing process.
Purchase scheduling
One of the core features of a manufacturer’s software is purchase scheduling or purchase planning. This feature is required to determine the timely purchase of raw materials for the manufacturing process in order to meet the demand. This feature assists the purchasing department in understanding what is required for orders placed and for demands that have been forecasted by the system. Also, it helps determine the exact list of materials and its quantities required to finish a manufacturing job. Moreover, since production planning may change from time to time based on demand forecasts, purchase planning becomes a critical feature while looking for an MRP software.

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