Material Requirements Planning (MRP)

A production planning, scheduling, and inventory control system used to manage manufacturing processes.

What is Material Requirements Planning (MRP)?

Material Requirements Planning (MRP) is a system that helps businesses manage their inventory, production planning, and scheduling processes. It aims to ensure that the right materials are available at the right time for production while minimizing carrying costs. By analyzing the demand for finished goods, MRP calculates the required materials and creates a schedule for when they are needed. This information enables businesses to make informed decisions about purchasing, production, and resource allocation to meet customer demand efficiently. MRP software allows companies to track inventory levels, monitor order status, and generate production plans based on demand forecasts and lead times. By integrating various aspects of production planning, such as bill of materials, work orders, and lead times, MRP optimizes the flow of materials and streamlines production processes. Ultimately, MRP helps businesses improve their production efficiency, reduce lead times, enhance inventory management, and ensure timely delivery of goods to customers.