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 Versus MRP II
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.
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