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How to Calculate Material Requirement Planning – Techniques / Formula / Policy

How to Calculate Material Requirement Planning – Techniques / Formula / Policy I have received many queries from students and practiti... thumbnail 1 summary

How to Calculate Material Requirement Planning – Techniques / Formula / Policy

I have received many queries from students and practitioners of materials requirement  planning that how to calculate MaterialsRequirement Planning (MRP). Here I am shortly given them advise to calculate the Materials Requirement Planning as per below formula, which will help you to calculate your objective results.

Required Quantity                  =  From bills of material
Consumption during lead time = ( ( 3 month required qty ) /90 ) x lead time                                                     
Safety stock                            = ( ( 3 month required qty ) /90 ) x Safety stock days

If Order Quantity to Specific Size :
Order Quantity = ( Material reqd / order size) = No. of lots rounded to higher side
Order Quantity =  No. of lots x  Lot size                          


If Order Quantity up-to certain level :
Order Quantity = Match Material required with min. order size , if  required size is higher then order else order min. order size


To detail working for an ERP system you’ll need to establish below pre-requisite policies to get the desire results of Materials Requirement Planning System.


Establish the following policies:

  • Material Type.
  • Material Min / Max Stock.
  • Purchase Unit & Stock Unit
  • Material Min / Max Order Size
  • Material Purchase Local / Import
  • Actual Supplier Lead Time Material wise.
  • Material Classification.
  • Material Categories Local / Import wise
  • Material Order Size. Max order / Min Order Size

You can also understand the Materials detail in SAP Material Master Detail into this blog.

1 comment

Sunita Chaudhar said...

Thanks for the information Eresource ERP's material requirement planning can organize, schedule and reschedule materials as far into the future as required.