Manufacturing Resources Planning

(MRP II)

The first widely used production planning software had the same acronym but with a different meaning. The original MRP meant material requirements planning. This takes target dates for finished products, and works backwards to determine a production plan and raw material purchasing plan. MRP II (spoken as “”MRP-two””) extended MRP by handling at least financial and forecast data, and sometimes engineering and human resources.  MRP II translates forecasts into master production schedules; maintains bills of material (lists of product components); creates work orders for each step in the production routing; tracks inventory levels; coordinates materials purchases with production requirements; and generates reports. The progression from MRP to MRP II continued, and the next generation gained the name ERP (Enterprise Resource Planning).