What is MRP and why it is used?

hi
this question was asked in an interview can some one explain in detail for me
What is MRP and why it is used? If there are 2 Lakhs of items is it feasiable to run MRP since running of MRP for 2 lakhs of item is time consuming, if yes then how it is been done?
thanx

Dear Bashir,
1.MRP is material requirements planning which plans the required quantity of depedent material's along with the required date.
2.MRP procedure is sub divided into a normal MRP,Master Production Scheduling and Consumption Based Planning.
3.Cosnumtion BAsed planning is further sub-divided into Time Phased Planning,Reorder Point Planning and Forecast based
Planning.Reorder point planning can be automatic or Manual.
4.MRP type is differentiated using the MRP type value assigned in the MRP1 view of the material master.
5.Some of the MRP types are PD - MRP,M0,M1,M2,M3 - MAster Production Scheduling related,VB - Manual reorder point
planning,VM-Automatic reorder point planning.
6.It is possible to take the MRP for the whole plant/for a specific MRP area using the batch MRP job.
7.MDBT is the T Code for scheduling the MRP job or it can be scheduled for the program RMMRP000 using the T Code SM36
and the results can be checked using SM37.
Regards
Mangalraj.S

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