Material Requirements Planning (MRP) systems are computerized inventory management and production planning tools used in manufacturing operations.

MRP systems help organizations to plan the materials, components, and products needed for their production processes. The system also helps manage orders, inventory levels, purchasing activities, capacity planning and other related functions.

By automating these processes, MRP systems enable companies to reduce costs by reducing lead times and increasing efficiency. Additionally, they provide visibility into demand requirements so that suppliers can better anticipate customer needs.

With an effective MRP system in place, businesses can improve overall supply chain performance while minimizing waste of resources, like raw materials, time and money.

They can also improve customer satisfaction by delivering products faster, more accurately, and with better quality.