Material Requirements Planning (MRP)

Material Requirements Planning (MRP) is a computer-based inventory management and production planning system used by manufacturing companies to optimize the procurement, production scheduling, and inventory control of materials and components needed for production. MRP software calculates material requirements based on production schedules, bill of materials, inventory levels, lead times, and customer orders, allowing companies to plan and coordinate material purchases, production activities, and delivery schedules efficiently. MRP systems help minimize inventory costs, prevent stockouts, and improve production efficiency and customer service levels.