What is Material Requirement Planning (MRP)? What is the difference between a gross requirements plan and a net requirements plan? Identify five specific requirements of an effective MRP system.

Material Requirement Planning (MRP) is a key concept in operations management that helps companies ensure they have the right materials available at the right time for production. It's a systematic approach to planning and controlling the inventory, ensuring that production processes run smoothly without shortages or excesses.

Difference between Gross Requirements Plan and Net Requirements Plan:

1. Gross Requirements Plan:
   - Gross requirements represent the total amount of materials needed for production, including both the planned production quantities and any additional requirements such as safety stock or buffer inventory.
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