Material Requirement Planning is a scheduling and inventory control software that calculates the number of components required for manufacturing finished goods and schedule its delivery. It was one of the first integrated systems with the objective of improving production capabilities and purchasing activities.

MRP software allows manufacturers to maintain the optimum level of inventory so that they never run out of stock. It helps them align production operations in a better manner. The main purpose of the MRP tool is to –

• Make sure that components are available for production and finished goods are ready to be delivered to customers

• Maintain the lowest possible inventory

• Accurately plan production and activities, delivery schedules

Manufacturing Resource Planning (MRP II) and Enterprise Resource Planning (ERP) evolved from Material Requirement Planning. Presently, ERP has become an integral part of businesses around the globe; it includes all the features of MRP and MRP II, along with other world-class functions.

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