Material Requirements Planning

Material Requirements Planning (MRP) is a system used in production planning to ensure that the right materials are available for manufacturing processes. It involves determining what materials are needed, how much is required, and when they should be ordered or produced. MRP helps companies manage inventory efficiently, reduce costs, and meet customer demand on time. By analyzing production schedules and inventory levels, MRP streamlines operations, ensuring that all necessary components are available without overstocking, thereby enhancing overall productivity and reducing waste.