(MRP)Material Requirements planning
Material Requirements Planning (MRP) is a system designed to help manufacturers efficiently manage production and inventory. Its primary goal is to ensure that the right materials are available at the right time to meet production demands while minimizing excess inventory. MRP calculates the materials needed based on the production schedule, current inventory levels, and lead times for procurement.
By using MRP, manufacturers can better plan production runs, reduce stock shortages, optimize ordering processes, and streamline overall operations. This results in improved resource management, cost savings, and more timely delivery of finished products.