MRP contributes to a company's profitability

Material requirements planning (MRP) systems have become the most effective and widely used inventory control systems across the world. Many operation managers have found the vast knowledge that MRP systems provide is absolutely necessary to effectively and competitively succeed in the current global economy. Although MRP systems have been in existence for almost 25 years, they have had their share of problems and are both challenged and enhanced by new supply chain management techniques and enterprise resource planning (ERP) systems. As the world wide web evolves into a global market of information, the information provided by MRP systems, in particular ERP systems, will be necessary in order for businesses to compete in the global marketplace.