Material Requirements Planning (Mrp)
Material Requirements Planning (MRP) is a computer-based inventory management system that determines the timing and quantity of components and materials needed to produce a product.
An MRP system uses historical sales data to forecast future demand and then creates a plan to procure the necessary materials. This plan includes when each component or raw material should be ordered and in what quantity.
MRP systems are used in manufacturing businesses of all sizes, from small businesses to large multinational corporations.