"Material requirements planning" (MRP) is a strategic process where the demand for materials or resources for the production or operation of a company is planned and forecasted in the long term. This involves analyzing production plans, demand forecasts, inventory levels, and other factors to ensure that adequate materials are available on time while minimizing inventory costs.
Typical functions of software in the area of "material requirements planning" could include:
Demand forecasting: Using historical data, trends, and statistical methods to estimate future demand for materials.
Production planning: Integrating production plans and schedules to determine the material requirements for planned production.
Inventory management: Monitoring and managing inventory levels to avoid shortages and excess inventory.