Explain the relationship between MRP, MRPII and ERP


Manufacturing resources planning (MRP II) is an extension of a simpler concept still in use called materials requirements planning (MRP). MRP is an automated version of a traditional production planning and control process. On the other hand, MRP II is a reengineering technique that integrates several business processes. MRP II is not confined to the management of inventory. It is both a system and a philosophy for coordinating the activities of the entire firm. As such, MRP II has evolved into the large suites of software called enterprise resource planning (ERP) systems. These huge commercial packages support the information needs of the entire organization, not just the manufacturing functions. Similarities in functionality between ERP and MRP II systems are quite apparent. Some argue that very little real functional difference exists between the two concepts. Indeed, the similarities are most noticeable when comparing top-end MRP II systems with low-end ERP packages.

Business

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