Online Computer Terms Dictionary - M

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)