MRP gives businesses visibility into the inventory requirements needed to meet demand, helping your business optimize inventory levels and production schedules. Without this insight, companies have limited visibility and responsiveness, which can lead to: Ordering too much inventory, which increases carrying costs and ties up more cash in inventory overhead that could be used elsewhere. Inability to meet demand because of insufficient raw materials, resulting in lost sales, canceled contracts and out-of-stocks. Disruptions in the production cycle, delaying sub-assembly builds that result in increased production costs and decreased output. Manufacturing companies rely heavily on MRP as the supply planning system to plan and control inventory, scheduling and production, but MRP is also relevant in many other industries, from retail to restaurants, to create balance between supplyand demand.