If you’re carrying more raw materials than needed to meet demand for your product, you’re

tying up cash that could be utilized in other areas of your business.

On the other hand, a deficiency of raw materials could cause stockouts, preventing you from

fulfilling customer orders and ultimately resulting in lost sales and cancelled contracts.

Material Requirements Planning, or M-R-P, is a supply planning method that helps balance

supply and demand and more efficiently track inventory, schedule production and ultimately

deliver the right product, on time, at optimal cost.

MRP pairs demand with the product’s Bill of Materials to determine the necessary type

and quantity of raw materials, components and subassemblies as well as the timeframe

in which those assets are needed.

With full visibility into materials-on-hand, you can automate and optimize production,

which allows you to better evaluate inventory levels, minimize carrying costs and, thus,

maximize profits while driving customer satisfaction.