Material Requirements Planning (MRP) is an inventory management system used to help businesses manage their material needs, scheduling, and production processes. It leverages computer software to track the quantity of each item needed, the cost of each material, and the suppliers who provide them. MRP helps businesses anticipate demands from customers, identify items that need to be purchased, reduce inventory costs, and improve lead times for deliveries. By utilizing MRP, businesses can confidently meet customer demands, streamline operations, and maximize profits.