What is the purpose of MRP (Material Requirements Planning) in SAP PP?

In SAP Production Planning (SAP PP), Material Requirements Planning (MRP) serves the crucial function of ensuring that materials are available for production processes to run smoothly. MRP helps in determining when and how much of each material is needed based on the production schedule, existing inventory levels, and future demand forecasts. By analyzing these factors, MRP helps in optimizing inventory levels, reducing stockouts, and improving overall production efficiency.