MRP / ERP

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Material Requirement Planning(MRP)

It is a computerised system for planning the requirements for raw materials, work-in-progress and finished items.

It looks at 3 things:

  1. What is needed?

  2. How much is needed?

  3. When is it needed?

Manufacturing resource planning (MRP II)

It goes further than MRP and also considers the requirements of the entire manufacturing process through production planning, quality checks, forecasting demand etc.

Enterprise resource planning (ERP)

ERP is the next evolution of a MRP system. 

ERP combines information from different parts of operations and support functions into one single system.

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