Business Pitch Dictionary by pitch.dog
Inventory, demand & supply planning · Core

Material requirements planning

Also called: MRP

ELI5

Calculation of materials and timing needed from production plans and bills of materials.

Used in conversation

“The number is useful only if everyone calculates material requirements planning the same way.”

Pitch context

You will see “Material requirements planning” in operating plans, procurement packs, supplier reviews and supply-chain reports when the discussion reaches inventory, demand & supply planning.

Why it matters: In inventory, demand & supply planning, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 3

Direct term-level sources and supporting source families.