Stands dor Material Requirements Planning. Stands for Consumption-Based Planning.
In this, the sales order, independently planned requirements, reservations, and dependent requirements created by the BOM explosion are handled directly as per requirements. Here, dependent or independent shall not be considered in the net requirements calculation.
It is specially useful in the planning of finished products, essential assemblies, and components. It is correctly used in areas that do not have in-house production/plants for the planning and operation of supplies.
BY Best Interview Question ON 06 Jun 2020