Difference between MRP and MPS

Last Updated : 15 Jul, 2025

Master Production Scheduling (MPS) and Material Requirements Planning (MRP) are parts of manufacturing planning systems and inventory planning systems. These are two separate software systems which provide ways to streamline manufacturing process. And demand is the key driver for any inventory planning system so lets first this demand and after that we will know the difference and use of both Master Production Scheduling and Material Requirements Planning.

What is Demand?

Demand drives any inventory planning and manufacturing system.
There are two types of demand

Independent Demand Item : The item refers to the direct customer’s demand means demand comes directly from customer and such items are also known as Top-level items. These items frequently have a Bill of Materials (BOM) and are sold.
Dependent Demand Item : The item which requires to be produced and such items are also known as Lower Level Items. Raw materials and sub assemblies which are required for production fall under dependent demand items. These items Bill of Materials (BOM).

What is Material Requirements Planning (MRP)?

Material Requirements Planning plans about items that have dependent demand. It means the item which requires to be produced and such items are also known as Lower Level Items. Raw materials and sub assemblies which are required for production come under dependent demand items. MRP plans for items needed to be produced. It plans about what materials we have, how much we need, How much we expect to purchase and consume.

The below figure illustrates working of MRP :

Features of MRP

Bill of Materials (BOM): MRP makes use of an in depth listing of raw substances, components, and assemblies required to manufacture a product.
Demand Forecasting: MRP systems can use historical facts and sales forecasts to predict future demand for merchandise.
Master Production Schedule (MPS): MRP integrates with the MPS, which outlines what needs to be produced, when it wishes to be produced, and in what quantities.
Lead Time Management: MRP takes under consideration the lead times of materials and other things which helps in scheduling production methods to ensure that substances are ordered and received on time for production.

What is Master Production Scheduling (MPS)?

Master Production Scheduling plans items that have independent demand. It means the item refers to the direct customer's demand means demand comes directly from customer and such items are also known as Top-level items. MPS plans for items based on customer's direct demand/sales order and forecasts. inventory costs, production costs, capacity, working hours, inventory levels, available storage, etc. are considered during production of elements. MPS does not run daily basis it runs on a weekly bases depending on the orders and forecast period.

The below figure illustrates working of MPS :

Features of MPS

Order Management: MPS helps in coping with customer orders with the help of scheduling manufacturing primarily based on order priorities and transport dates.
Capacity Planning: MPS assesses the production ability to ensure that the planned manufacturing schedule can be met with the available sources.
Reporting and Analytics: MPS offers targeted reviews and analytics on manufacturing schedules, inventory levels, and order status.
Time Horizon: MPS normally covers a specific time horizon, regularly ranging from some weeks to several months.

Example of MRP and MPS

MPS and MRP run separately just to meet change requests. Lets take one example Pen is a MPS item and different parts/components like cap, barrel, refill etc. are MRP items. MRP runs more frequently to get action messages required to produce and maintain production schedule. and MPS does not run daily basis they runs in a week basis or more and deals with change requests by manufacturing newly changed product.