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Material Requirements Planning (MRP)

January 3, 2023

The computer-based process of preparing, scheduling and controlling inventory and raw materials to be purchased and used in the manufacturing process. MRP works backwards from production, utilizing forecasted sales to determine raw materials and components needed to meet anticipated sales. Proper MRP is a crucial aspect in manufacturing as an abundance of unused inventory can negatively affect profitability and a short supply of inventory slows production.


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