EXPLAINER
What is an MRP system?
MRP - Material Requirements Planning - is a method (and the software that implements it) for calculating exactly what raw materials and components a manufacturer needs, in what quantities, and by when, to fulfill expected demand. It is the bridge between sales forecasts and the shop floor.
The problem MRP solves
Without MRP, manufacturers run on spreadsheets and tribal knowledge: someone scans the sales pipeline, looks at component lead times, places purchase orders, and hopes the timing works. As volume and SKU count grow, that approach breaks. MRP automates the calculation: given a demand signal and a multi-level BOM, the system tells you exactly which parts to order, when to issue work orders, and where stockouts will appear.
Inputs to MRP
Three inputs drive every MRP calculation: (1) demand - sales orders, forecasts, or both; (2) the bill of materials - the structured recipe for each finished product; (3) inventory state - what you have on hand, on order, and committed. With those three, MRP outputs a procurement schedule and a production plan.
MRP vs MRP II vs ERP
MRP (the original 1960s concept) calculated material requirements only. MRP II extended that with capacity planning and shop-floor scheduling. ERP wraps both inside a broader business suite (finance, HR, CRM). Modern cloud-native systems blur the boundary; FabHub focuses on the manufacturing core (MRP/MRP II depth) and integrates with accounting and CRM rather than absorbing them.
What FabHub adds
FabHub treats MRP as a workflow, not a calculation. The Buy / Make / Check / Fix / Sell pillars cover procurement, production, quality, rework, and fulfillment as connected steps with role-based access, multi-location stock, and full audit history.
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