Material Requirements Planning (MRP)

Material Requirements Planning (MRP) systems are used to manage manufacturing processes.

MRP software takes input data and determines the lowest possible amount of inventory to order. If a company does not have sufficient materials in stock to complete its orders on time, it will lose money. If there is too much of a component that is not being used, capital is tied up unnecessarily and may be wasted.

MRP systems solve this problem by scheduling and monitoring inputs and inventory to help plan manufacturing, purchasing and delivery tasks.

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