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What is MRP in manufacturing?

By Zippia Team - Jan. 8, 2023

MRP in manufacturing is Materials Requirements Planning (MRP), which refers to an inventory approach in which an organization utilizes computers to predict the quantity and timing of materials needed to execute a production process.

MRP is a software-based inventory and supply management system designed for organizations and businesses. Organizations use MRP to:

  • Estimate the amounts of raw materials

  • Manage and maintain inventory levels

  • To schedule production and deliveries

MRP is extremely useful to businesses wanting to know what is needed, how much is needed, and the specific time certain materials are needed. This works backward starting with a production plan and ending with finished products or goods.

What is MRP in manufacturing?

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