What is the primary function of a material requirements planning (MRP) system?

The primary function of a material requirements planning (MRP) system is to schedule and manage manufacturing processes. MRP systems are designed to ensure that materials and products are available for production and delivery to customers while maintaining the lowest possible inventory levels. This involves determining the quantities and timing of materials needed to meet production schedules and demand forecasts.

MRP systems achieve this by calculating the required materials based on the production schedule, considering lead times for procurement and manufacturing. By effectively managing these processes, an MRP system helps in optimizing resource use, reducing waste, and improving overall operational efficiency in manufacturing environments. This capability is crucial for organizations aiming to balance supply and demand while minimizing inventory costs.