The term "material requirement" refers to the amount of materials or raw materials needed for the production of goods or the provision of services. Material requirements are typically determined based on production plans, orders, inventory levels, and other factors.
Typical functions of software in the "material requirement" area could include:
Demand Planning: The software allows for planning material requirements based on production orders, forecasts, and other sources to ensure that sufficient materials are available for production.
Inventory Management: It enables monitoring of existing inventory levels and matching them with forecasted material requirements to avoid shortages and reduce excess inventory.
Demand Determination: The software assists in determining material requirements for specific time periods or projects based on production schedules, bills of materials, and consumption data.
Automatic Material Ordering: It allows for automatically generating material orders once the requirement is identified, and assists in selecting suppliers and determining order quantities.
Integration with other Systems: The software can be integrated with other systems such as ERP (Enterprise Resource Planning) systems or production planning systems to seamlessly incorporate material requirements into the entire operational workflow.
Reporting and Analysis: It provides features for generating reports and analyses on material requirements to identify trends, predict shortages, and improve the efficiency of material procurement.