What is the first step in the MRP run?

The first step in the Material Requirements Planning (MRP) run is the net requirements calculation. This step is crucial as it involves determining the quantity of materials needed to meet production demands. It takes into account the existing inventory levels, scheduled receipts, and forecasted demands to calculate how many additional units are required.

This foundational step sets the stage for the subsequent processes in the MRP cycle. By accurately calculating net requirements, organizations can avoid overstocking or stockouts, ensuring that production runs smoothly and efficiently. This methodical approach helps businesses maintain optimal inventory levels and supports effective resource planning.

After net requirements have been established, the process can move on to the other steps such as Bill of Materials (BOM) explosion, which helps to break down the components needed, and source determination, where suppliers for the required materials are identified. Lot size calculation, which determines the optimal quantity to be ordered or produced, is subsequent to the net requirements, relying on the data established during the initial calculation step.