MRP, which stands for Materials Requirements Planning, is a system used by managers to plan and coordinate the use of materials and resources throughout the production process. It’s designed to streamline the production process by predicting and scheduling material needs so that the right parts, materials, and supplies arrive when they’re needed. By accurately tracking inventory levels and ordering resources in advance, MRP helps companies avoid delays due to shortages or excesses, as well as reduce their overall costs. Put simply, an effective Materials Requirements Plan helps businesses make better decisions while ensuring they meet customer demands on time and within budget.