Manufacturer Resource Planning

(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 is made up of a variety of

linked functions: 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)