Material Requirements Planning

A production planning and inventory control system that calculates material needs based on the bill of materials, production schedule, and current inventory levels.

Why it matters

MRP depends on accurate BOM data from PLM — when the two systems are out of sync, MRP generates incorrect purchase orders, leading to shortages or excess inventory that directly impacts production schedules.

Cite this definition

Finocchiaro, Michael. “Material Requirements Planning.” DemystifyingPLM PLM Glossary, 2026, https://www.demystifyingplm.com/glossary/material-requirements-planning