How can I create production order based on MRP?

That should be standard functionality.

Some things to consider: make sure the Stock Item you want to make has it’s Planning Method set to “MRP” (General tab).  Source for Production Order is set to “Production” (Manufacturing tab)  and in the Inventory Planning tab set the Source to “Manufacturing”.

If you have a Sales Order that requires that Stock Item and there is zero inventory of that Stock Item when you “Regenerate Inventory Planning”, then that Stock Item should be listed in the “Inventory Planning Display”.  Check the box in front of that line and select “Manufacture” from the more menu (...).