Material Requirement Planning

Material Requirement Planning (MRP) is a system used in manufacturing to ensure that the right materials are available when needed for production. It calculates the quantities and timings of materials based on demand forecasts, production schedules, and inventory levels. By doing so, MRP helps prevent delays, reduces excess inventory, and streamlines the purchasing process. Essentially, it ensures that manufacturers have the necessary materials on hand to meet customer demands efficiently and effectively, ultimately contributing to smoother operations and improved profitability.