What is Material Requirements Planning (MRP)?

Material requirements planning, or MRP, is a software-based decision-making tool used in production. The tool compares current inventory levels with production capacity and analyzes what products to manufacture, what quantities are needed, and when they are needed — all based on the forecast generated by the software.

The material requirements planning system helps manufacturers figure out inventory requirements and balance supply and demand. Learn more about the supply chain software and supply chain management services offered by GEP.


Related Terms

What is Manufacturing Resource Planning (MRP)?What is Master Vendor Data Management?What is Materials Management?What is MRO in Procurement?What is MRO Inventory?