Closed Loop MRP

Pick your favorite snack. Let’s say it’s Doritos Cool Ranch. Well, imagine there was a way for your pantry to automatically detect when you’re running low on Doritos and order them if your inventory runs low.

Well, this exists in the corporate world. The world runs on software. Companies use something called Closed Loop Manufacturing Resources Planning (MRP) to keep track of their manufacturing plans and control their inventory levels.

Closed-loop MRP was created in the 1970s and offers continuous feedback to companies on procurement and other process requirements to maximize efficiency. The MRP tracks returns from customers and helps companies plan when they can and should produce new products.