Materials requirement planning (MRP) enables a firm to make sure that the right amount of each material or component is available at the right time to satisfy its production needs.

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MRP is a system that helps firms plan and manage the materials needed for production, ensuring that they have enough materials on hand to meet demand and avoid stockouts. By calculating the quantities of raw materials or components needed to produce a finished product, MRP can help firms maintain optimum inventory levels, reduce waste, and improve delivery times.

Materials Requirement Planning (MRP) Enables a Firm to Make Sure