Inventory Planning

Material Requirements Planning (MRP) is the system manufacturers use to determine what materials are needed, when they are needed, and how much to order so production can run on schedule. MRP connects demand forecasts, bills of materials, and inventory records to generate purchase and production plans. In theory, this process ensures every part arrives exactly…

The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. In simple terms, it shows how efficiently inventory is used to generate revenue. But in manufacturing and distribution, it does more than measure efficiency. It often reflects: When inventory turns shift, the cause is usually operational…