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material resource planning

A formal computerized approach to inventory planning, manufacturing scheduling, supplier scheduling, and overall corporate planning. The material requirements planning (MRP) system provides the user with information about timing (when to order) and quantity (how much to order), generates new orders, and reschedules existing orders as necessary to meet the changing requirements of customers and manufacturing. The system is driven by change and constantly recalculates material requirements based on actual forecast orders. It makes adjustments for possible problems prior to their occurrence, as opposed to traditional control systems, which looked at more historical demand and reacted to existing problems. Material resource planning (MRP II) evolved from material requirements planning when it was recognized that most major data needed to manage a manufacturing or distribution firm could be obtained from the material requirements planning information. The ability of a material resource planning system to meet the various needs of manufacturing, materials, and marketing personnel within a changing business environment contributes to its growing implementation by manufacturing companies.

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  • Francisb
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