What is the primary purpose of Material Requirements Planning (MRP)?

The primary purpose of Material Requirements Planning (MRP) is to ensure that supply meets demand efficiently. MRP is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Its main goal is to maintain an optimal inventory level, ensuring that materials are available for production and products are available for delivery, while minimizing excess inventory.

Through MRP, organizations can anticipate material needs based on forecasting demand and current inventory levels. This planning helps ensure that the right quantity of materials is available at the right time, which is crucial for maintaining smooth production processes and meeting customer delivery schedules. By focusing on aligning supply with anticipated demand, MRP plays a vital role in enhancing operational efficiency and reducing the risk of stockouts or overstock situations.