Materials Requirements Planning (MRP) is a system used in manufacturing businesses to better manage their materials and production processes. It involves forecasting demand for materials and services, tracking stock levels, scheduling vendors and ensuring enough supply is available to meet customer demand. MRP ensures that resources are efficiently distributed and managed throughout the production process, resulting in higher efficiency and cost-efficiencies for material acquisition and production control. MRP makes it easier to identify bottlenecks in production processes and take corrective action to streamline operations.