Manufacturer Resource Planning

application (MRP II) A system based on MRP which allows

manufacturers to optimise materials, procurement,

manufacturing processes, etc., and provide financial and

planning reports.

In the late 1970s and early 1980s, manufacturers integrated

MRP and other manufacturing and business functions. This

renaissance is commonly known as Manufacturing Resource

Planning (MRP II). According to the American Production and

Inventory Control Society, Inc. (APICS), MRP II is a method

for the effective planning of all resources of a manufacturing

company. Ideally, it addresses operational planning in units,

financial planning in dollars, and has a simulation capability

to answer "what if" questions. It includes business planning,

sales and operations planning, production scheduling, material

requirements planning (MRP), capacity requirements planning,

and the execution support systems for capacity and material.

Output from these systems is integrated with financial reports

such as the business plan, purchase commitment report,

shipping budget, and inventory projections in dollars.

Manufacturing resource planning is a direct outgrowth and

extension of closed-loop MRP.

See also Enterprise Resource Planning, SAP R/2, R/3, and

Baan.

(1999-02-16)