What is the primary function of a Material Requirements Planning (MRP) system?

The primary function of a Material Requirements Planning (MRP) system is to help plan and manage production and inventory levels. MRP is a production planning, scheduling, and inventory control system used to manage manufacturing processes. It ensures that the right materials are available for production while minimizing excess inventory.

By utilizing forecasts and demand data, an MRP system calculates the materials needed at various stages of production and schedules their availability accordingly. This capability can lead to improved efficiency, as it helps synchronize production schedules with material availability, ultimately reducing delays and ensuring that production targets are met.

While managing supplier relationships, facilitating customer feedback, and overseeing disposal of excess materials are important aspects of broader supply chain or inventory management, they are not the primary focus of an MRP system. An MRP system's core purpose revolves around optimizing production planning and inventory levels to support effective manufacturing operations.