Material requirements planning (MRP) is a computer-based inventory management system designed to improve productivity for businesses. Companies use material requirements-planning systems to estimate quantities of raw materials and schedule their deliveries.

What is meant by material requirement planning?

A Material Requirements Planning (MRP) system is a planning and decision-making tool used in the production process which analyses current inventory levels vs production capacity and the need to manufacture goods, based on forecasts. MRP schedules production as per bills of materials while minimizing inventory.

What is material requirement planning with example?

MRP is a planning and control system for the resources in a company and was essentially the harbinger of ERP systems to come. ... For example, an ERP system would possess advanced functionality in the areas of financial , customer relationship, and sales order management.