What are the components of material requirements planning?

Material Requirements Planning (MRP) consists of three main components: the master production schedule, which outlines what needs to be produced and when; bill of materials (BOM), which details the raw materials and components required for production; and inventory records, which track the quantities of materials on hand, on order, and needed for production. Together, these components help ensure that materials are available for production while minimizing excess inventory. MRP systems also incorporate demand forecasting to align production with customer demand.