Manufacturer Resource Planning

Manufacturer Resource Planning

(application)(MRP II) A system based on MRP which allowsmanufacturers to optimise materials, procurement,manufacturing processes, etc., and provide financial andplanning reports.

In the late 1970s and early 1980s, manufacturers integratedMRP and other manufacturing and business functions. Thisrenaissance is commonly known as Manufacturing ResourcePlanning (MRP II). According to the American Production andInventory Control Society, Inc. (APICS), MRP II is a methodfor the effective planning of all resources of a manufacturingcompany. Ideally, it addresses operational planning in units,financial planning in dollars, and has a simulation capabilityto answer "what if" questions. It includes business planning,sales and operations planning, production scheduling, materialrequirements planning (MRP), capacity requirements planning,and the execution support systems for capacity and material.Output from these systems is integrated with financial reportssuch as the business plan, purchase commitment report,shipping budget, and inventory projections in dollars.Manufacturing resource planning is a direct outgrowth andextension of closed-loop MRP.

See also Enterprise Resource Planning, SAP R/2, R/3, andBaan.