The Material Requirements Planning (MRP) Ordering System is a technology-driven system used by organizations to automate the ordering process for production materials. By using MRP, purchasing teams can calculate and plan supply orders based on estimated demand and actual inventories. This allows organizations to act quickly when supplies are needed, reducing their cost of inventory holding, while also ensuring there are enough materials available to meet customer demand. The MRP system uses distinct algorithms to create forecasts of demand and analyze current inventory levels; these analyses guide the ordering process and allow businesses to proactively plan and adjust their purchasing strategies as needed.