Materials Requirement Planning (MRP)

Materials Requirement Planning (MRP) is a system used in inventory management to ensure that the right materials are available for production at the right time. It analyzes demand for finished products and breaks it down into the necessary raw materials and components. By considering factors like lead times and current inventory levels, MRP helps companies schedule orders and manage stock efficiently, minimizing waste and reducing costs. Essentially, it helps businesses plan ahead to meet customer needs without overstocking or running out of essential materials.