What Are the Differences Between MRP and MPS?

MPS generally has independent demand, while MRP has dependent demand. Independent demand is demand for an item that is unrelated to the demand for other items, such as demand for finished goods. Dependent demand is demand that is directly related to or derived from the bill-of-material structure for other items or end products. MRP might also include forecast and sales orders if items are sold as service (spare) parts. The majority of demand, however, is demand from parent orders. The demands on MRP include:

• Firm and planned work orders for a parent item.

• Sales orders and forecast for a service part.

• Interplant demands.

You use MRP to generate material plans for lower-level components. Processing options control how the system runs the generation.