The quantities to be produced to inventory are added to the production plan that is prepared from the customer orders, Master Production Scheduling, Supplier Portal and other channels, and thus finalized. It is deemed that capacity constraints have been resolved with the capacity planning operation and the process is set up for material requirement planning.

The objective of the Material Requirements Planning application is to provide the correct purchase quantities that are required to implement the production plan, and further to prevent short/excess on-hand inventories, surprise and unnecessary expenses, produce semi-products in a timely manner and in the required quantities, to guide the suppliers, and to help enhance their quality, and deliver the required material at the given time.

Material Requirements Planning applies the lead times to the bill of materials to evaluate the material requisition and semi-product production plan.Material Requirements Planning application further provides supplier management by considering the constraining conditions such as the purchase ratios of different suppliers, their production lead times, capacities, shipping days, transport times, and lot sizes,in the process of preparing the purchase orders.