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MRP 
Material Requirements Planning (MRP) enables you to plan material requirements for a manufacturing or procurement process.
MRP calculates gross requirements for the highest Bill of Materials level based on sales orders and independent demands. It calculates gross requirements at the lowest Bill of Materials levels by carrying down net parent demands through the Bill of Materials structure. The dependent levels might have their own independent demands, such as sales orders and forecasts.
The results of the MRP run are recommendations that fulfill gross requirements by taking into consideration the existing stock levels and existing purchase and production orders. The MRP run also takes into account defined planning rules for Order Multiple, Order Interval, and Minimum Order Quantity.
Recommendations are back scheduled by the defined lead time to arrive at the requirement dates for their own components.
