MRP (Material Requirements Planning)

Material Requirements Planning (MRP) is an inventory management system used in procurement for businesses to forecast and plan material needs. It is a production-planning system that anticipates inventory and estimates future inventory requirements based on sales analysis, past demand, and forward-looking business trends. Through planning inventory levels as well as scheduling of delivery and ordering, MRP helps ensure businesses can meet customer demands without over-stocking or incurring additional costs from unmet demand.