ALERT

[FREE DEMO] Deploy Your Enterprise Cloud in Minutes

Material Requirements Planning (MRP)

Definition - What does Material Requirements Planning (MRP) mean?

Material requirements planning (MRP) is a type of planning focused on the management of processes in manufacturing industries. MRP looks at the availability of materials for production and other related metrics.

Techopedia explains Material Requirements Planning (MRP)

One aspect of material requirements planning is inventory control. This type of internal inventory handling is just one of a set of methodologies, tools and resources that corporate executives and other leaders use in order to balance the availability of resources with the necessity to maintain lean inventories and avoid overstocking. Smarter purchases and more oversight of materials handling in the supply chain in general can lead to increased profits for a business and more efficient processes that require less additional management and labor.

Various types of material requirements planning include reporting based on physical remainders after manufacturing processes, and other sophisticated systems that use bar code or tagging technologies to show how many materials are used in a given production cycle. Professionals also talk about "next generation MRP," where even newer tools allow for more automation of materials demand management. For example, highly computational resources could analyze supply chain details and create buffers for any changes that may occur in a business process. All of this is intended to keep business processes going smoothly and automatically as they are provided with the materials they need when they need them.

Techopedia Deals

Connect with us

Techopedia on Linkedin
Techopedia on Linkedin
Tweat cdn.techopedia.com
"Techopedia" on Twitter


'@Techopedia'
Sign up for Techopedia's Free Newsletter!

Email Newsletter

Join thousands of others with our weekly newsletter

Resources
The 4th Era of IT Infrastructure: Superconverged Systems
The 4th Era of IT Infrastructure: Superconverged Systems:
Learn the benefits and limitations of the 3 generations of IT infrastructure – siloed, converged and hyperconverged – and discover how the 4th...
Approaches and Benefits of Network Virtualization
Approaches and Benefits of Network Virtualization:
Businesses today aspire to achieve a software-defined datacenter (SDDC) to enhance business agility and reduce operational complexity. However, the...
Free E-Book: Public Cloud Guide
Free E-Book: Public Cloud Guide:
This white paper is for leaders of Operations, Engineering, or Infrastructure teams who are creating or executing an IT roadmap.
Free Tool: Virtual Health Monitor
Free Tool: Virtual Health Monitor:
Virtual Health Monitor is a free virtualization monitoring and reporting tool for VMware, Hyper-V, RHEV, and XenServer environments.
Free 30 Day Trial – Turbonomic
Free 30 Day Trial – Turbonomic:
Turbonomic delivers an autonomic platform where virtual and cloud environments self-manage in real-time to assure application performance.