Explain how MRP can decrease a company's inventory while improving its customer service level. Include a real-life example

Manufacturing is the complex process which requires specific planning. Material requirement planning (MRP) is the inventory management system that helps in managing the manufacturing process. This process helps in scheduling and filing of orders for raw materials which is converted into the finished goods. The MRP system manages the dependent demand items, i.e. those items which need to be used in the manufacturing process. The system breaks down the total requirement of inventory into separate stages which facilitates the production process and helps in keeping the flow at the even level. It also helps in keeping the inventory cost minimum. The MRP contributes in...