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Material requirement planing (MRP) is defined as the key piece of logic that ties the production functions together from a material planing and control view (Jacobs & Chase, 2020). It is used in all sorts of companies as it is logical and easily understood when determining the number of parts, components and materials needed to produce items. Not only that, but it also provides a schedule that specifies when each of these items should be ordered or produced and is based on dependent demand, caused by the demand for a higher-level item (Jacobs & Chase, 2020). For example, computer parts like microchips, keyboards, and other hardware are based on the demand for higher-level items like computers.

The master production schedule is a major input into the MRP process and deals with end items (finished goods) that are then sold to customers (Jacobs & Chase, 2020). This schedule determines when items will be used to produce a product and it is used for planning with independent demand. For example, higher-level items like computers, mentioned above, are independent demand items. This assists in mapping out demand and working out how much raw material one will need in their supply chain and production system. Using material requirement planning along with the master production schedule keeps a company's supply chain and manufacturing process streamlined and able to keep up with demand.