materials requirements planning (MRP)

Materials Requirements Planning (MRP) is a systematic approach used by manufacturing or production companies to ensure they have the right materials and components available for production at the right time. It involves analyzing production schedules, inventory levels, and lead times to determine what needs to be ordered or produced. MRP helps minimize excess inventory and stockouts, optimize resource use, and improve delivery reliability. Essentially, it's a detailed plan that coordinates procurement and manufacturing activities to efficiently meet customer demands while controlling costs.