What Is the Difference Between the MRP & MRP II Systems?

Materials requirements planning and manufacturing resource planning are interchangeable computer-driven systems for organizing and tracking production processes. MRP schedules production and controls the flow of inventory to match customers’ quantity orders and delivery targets. MRP II is ideally an upgrade of MRP that comes with advanced functionalities for optimizing production resources. MRP and MRP II are commonly used in manufacturing and fabrication businesses.


MRP is manufacturing-centric: It focuses the scheduling and materials control aspects of production to orders placed by customers. This limits its capacity to base production on demand forecasts. This distinguishes it from MRP II, which tracks additional aspects of production, such as personnel requirements, financial estimates, demand forecasts and business planning. MRP II is actually more integrative and strategically oriented than MRP, considering that it goes beyond the short term to weigh the medium-term and long-term impacts of all production resources.


About the Author

Paul Cole-Ingait is a professional accountant and financial advisor. He has been working as a senior accountant for leading multinational firms in Europe and Asia since 2007. Cole-Ingait holds a Bachelor of Science Degree in accounting and finance and Master of Business Administration degree from the University of Birmingham.