What are MRP systems?

MRP systems (Material Requirements Planning systems) are planning tools that calculate material needs based on production schedules, bills of materials (BOMs), inventory levels, and demand forecasts. They answer the “what” and “when” of manufacturing by determining what materials to purchase or produce, when to order them, and in what quantities to avoid stockouts or excess inventory. MRP systems focus on upstream planning, inventory control, and procurement scheduling to support efficient production.