How do you do material requirement planning?

Material Requirements Planning (MRP) is a software based production planning and Inventory control system used to manage manufacturing processes. Although it is not common nowadays, it is possible to conduct MRP by hand as well. An MRP system is intended to simultaneously meet three objectives: * Ensure materials and products are available for productin and deliver to customers. * Maintain the lowest possible level of inventory. * Plan manufacturing activities, delivery schedules and purchasing activities. It is very important that the accuracy of your inventory, bills of material and unit of measure is at least 95%.