What are the business benefits of material requirement planning?

What are the business benefits of material requirement planning?

Any manufacturer will tell you that getting materials on time is crucial within the supply chain. Missed delivery schedules for materials or incorrect amount of supplies could mean expensive disasters for production. To keep production on schedule and to ensure materials availability, manufacturers have developed a management approach called materials requirement planning (MRP).

Also known as a production planning and inventory management system, MRP is a demand-driven planning and scheduling system for ordering materials at the right time.