Materials Requirements planning (MRP-1 or mrp): Computer based information system for ordering and scheduling of dependent demand inventories.
Objectives of MRP
1. To improve customer service by meeting delivery schedules promised and shortening delivery lead times.
2. To reduce inventory costs by reducing inventory levels.
3.To improve plant operating efficiency by better use of productive resources.
Three main purposes of a basic MRP system are to:
- Control inventory levels
- Assign operating priorities
- Assign capacity to load production systems.