Material Requirements Planning (MRP) Definition:
Materials requirement planning (MRP) is an operations management tool that uses a computer to help manage materials and inventories.
The basic function of material requirement planning MRP system includes inventory control, bill of material processing and elementary scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing, purchasing and delivering activities. Most material requirement planning MRP systems are software-based, while it is possible to conduct MRP by hand as well.
Other Related Accounting Articles: