What is ForecastWorx?

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What is MRP (Material Requirements Planning)?

MRP — Material Requirements Planning — is the standard name for the core planning calculation that converts demand into time-phased supply requirements. Given demand, inventory, open supply, lead times, bills of material, and order policies, MRP answers: what should we buy or manufacture, how much, and when? Even modern ERP and advanced planning systems still run some version of that logic: explode demand through the BOM, net against inventory and scheduled receipts, offset by lead time, and generate planned orders.

Why do people still use the term MRP?

The term persists because it describes a specific planning calculation, it is deeply embedded in manufacturing language, and many companies still operate traditional MRP. Planners, buyers, consultants, auditors, software vendors, and educational programs have used "MRP" for decades — replacing the term would create more confusion than value. Buyers still search for "MRP software," "MRP run," and "MRP recommendations," even when evaluating cloud-native, AI-enabled planning engines.

How is MRP different from ERP, APS, DRP, MPS, and replenishment planning?

A useful distinction: MRP is dependent-demand planning, usually BOM-driven. Replenishment planning is inventory planning for finished goods or purchased items. DRP handles distribution requirements across locations. MPS is the finished-goods production schedule. APS is constraint-aware, optimization-based planning. ERP is the system of record and transaction execution. People often say "MRP" when they really mean replenishment planning, supply planning, production planning, or the entire planning system.

Does demand planning replace MRP?

No. Demand planning estimates what will be needed; MRP determines the component and supply orders required to satisfy that demand. They are complementary: forecasting feeds the supply calculation. ForecastWorx combines both — AI-driven demand forecasting and the supply planning engine that turns forecasts into purchase and production recommendations.

How does ForecastWorx go beyond traditional MRP?

Traditional MRP runs on a master production schedule, BOM explosion, on-hand inventory, open orders, fixed lead times, and planned purchase/production orders. ForecastWorx adds statistical and AI-driven demand forecasting, demand classification and profiling, item-location planning, safety-stock optimization, service-level targeting, lead-time and demand variability modeling, inventory policy selection, supplier and location constraints, replenishment and purchase recommendations, BOM and dependent-demand planning, exception management, continuous re-planning, and financial prioritization using cost, revenue, margin, and working capital.

What is Adaptive MRP?

Adaptive MRP is the best way to describe ForecastWorx. It communicates that the system does not merely run a static BOM-explosion calculation — it continuously adjusts forecasts, inventory targets, and supply recommendations as demand and operational conditions change. Where traditional MRP assumes fixed lead times and deterministic demand, Adaptive MRP embraces uncertainty and re-plans continuously.

FAQ · MRP EXPLAINED

MRP vs ForecastWorx: Adaptive MRP

Traditional MRP asks: what materials do I need, how many, and when? ForecastWorx expands that into: what demand is likely, how uncertain is it, what inventory should I hold, what supply should I create, when should I create it — and how should those decisions adapt as conditions change?

ForecastWorx is the modern evolution of MRP — an advanced, demand-driven MRP and inventory planning platform that combines AI demand forecasting, inventory optimization, and supply planning in one adaptive system. Below, we answer the most common questions about MRP and how ForecastWorx goes far beyond a basic BOM explosion engine.

// THE PROGRESSION

From static calculation to adaptive planning

Traditional MRP

Master production schedule
BOM explosion
On-hand inventory
Open orders
Fixed lead times
Planned purchase and production orders

ForecastWorx — Adaptive MRP

Statistical and AI-driven demand forecasting
Demand classification and profiling
Item-location planning
Safety-stock optimization
Service-level targeting
Lead-time and demand variability modeling
Inventory policy selection
Supplier and location constraints
Replenishment and purchase recommendations
BOM and dependent-demand planning
Exception management
Continuous re-planning
Financial prioritization (cost, revenue, margin, working capital)

// TERMINOLOGY

Planning terms, precisely defined

The terminology around planning systems is often imprecise. People frequently say "MRP" when they really mean replenishment planning, supply planning, production planning, or the entire planning system. Here's the useful distinction:

MRP

Dependent-demand planning, usually BOM-driven — the net-requirements engine.

Replenishment Planning

Inventory planning for finished goods or purchased items.

DRP

Distribution requirements planning across locations.

MPS

Master production schedule for finished goods.

APS

Constraint-aware and optimization-based planning.

ERP

System of record and transaction execution.

// FREQUENTLY ASKED

MRP questions, answered

See Adaptive MRP in action

ForecastWorx modernizes MRP by combining demand forecasting, inventory optimization, and supply planning in one adaptive platform.

Explore Demand Forecasting, Inventory Planning, Replenishment Planning, and Supply Planning — or browse the full FAQ.

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"In supply chain, the companies that see demand before it arrives will be the ones that survive."

— MIT Sloan Management Review