What is Material Resource Planning (MRP)?
MRP is a systematic approach to management and planning that allows manufacturers to develop production plans and order materials as required by the plan. What is the benefit of using MRP to determine correct material requirements? MRP leverages planning and management to minimize the amount of cash invested in the manufacturing process at any given time. Keeping unnecessary inventory on hand is expensive and inherently wasteful. MRP helps you avoid costly overstocks. Conversely, inventory shortages can stop the manufacturing process and lead to employees being sent home or working on other less productive tasks. MRP solves these issues by ensuring the proper materials are always on hand. How exactly does MRP help improve manufacturing efficiency? MRP helps you keep operations at maximum efficiency by reducing machine and labor downtime. With optimized work station and machinery usage you can reduce production cycle times and increase productivity. How does MRP help improve the ability
