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4 steps of MRP

This is a quick visual outline of the way an MRP system works and how MRP improves your business

Materials Requirement Planning (MRP) is what companies use to streamline production of goods and inventory management. It is an automated system that uses sales, forecasting, cost of materials, storage capacity, and other data to optimize a business’s production schedule.

An illustration of the 4 steps of MRP

All MRP systems undergo the same 4 steps to create their production schedule. MRP systems are used to reduce wasted inventory and deliver customer orders faster. Materials Requirement Planning is built on accurate and consistent data inputs, so as long as they are fed new information, your supply chain will remain efficient.

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