A computerized inventory management system called Materials Requirement Planning (MRP) assists manufacturers in organizing their material purchases and production. Based on demand projections and the bill of materials (BOM), it determines the amounts of components, subassemblies, and raw materials required to fulfill production schedules. By minimizing inventory levels, lowering carrying costs, and preventing stockouts, MRP seeks to guarantee that materials are available for production. It is an essential tool for handling intricate production and supply chain management.
