What is the primary focus of materials requirement planning (MRP)?

The primary focus of materials requirement planning (MRP) is to ensure that materials are available for production while maintaining the lowest possible inventory levels. MRP is a system used in manufacturing to manage manufacturing processes through planning and scheduling. By calculating the necessary amounts of raw materials and components needed for production, MRP helps to prevent stockouts that could halt production, while also minimizing excess inventory, which can tie up capital and increase storage costs.

This balance is crucial for efficient operations, allowing companies to be responsive to changes in demand and to optimize their resources. The aim is to align the availability of materials with production schedules as effectively as possible, leading to improved efficiency and reduced costs in the supply chain.