MRP (Material Requirements Planning)

Material Requirements Planning (MRP) is a system used by manufacturers to ensure they have the right materials and parts available at the right time to produce their products. It calculates what is needed, how much, and when, based on production schedules and demand forecasts. MRP helps optimize inventory levels, avoid shortages, and reduce waste by planning purchases and production in advance. Essentially, it acts as a detailed schedule that coordinates procurement and manufacturing activities to meet customer deadlines efficiently while minimizing costs.