Manufacturing Resource Planning (MRP-II)

Manufacturing resource planning (MRP-II) is a method for the effective planning of all resources of a manufacturing company. Ideally, it addresses operational planning in units, and financial planning in dollars, and has a simulation capability to answer what-if questions.

It consists of a variety of processes, each linked together:

  • business planning,
  • production planning (sales and operations planning),
  • master production scheduling,
  • material requirements planning,
  • capacity requirements planning,
  • and the execution support systems for capacity and material.

Output from these systems drives the creation of production plans, which are then used to generate schedules and purchase orders.

MRP-II was developed in the 1980s as an extension of MRP I, which focused primarily on materials management. MRP-II added capacity planning and other elements to create a more comprehensive system. Many ERP systems now incorporate MRP-II functionality.

  • The main advantage of using an MRP-II system is that it can help manufacturing companies better utilize their resources and improve their overall efficiency.
  • Additionally, MRP-II systems can provide companies with the ability to simulate different what-if scenarios in order to determine the best course of action.

There are some potential disadvantages to using an MRP-II system as well:

  • One is that MRP-II systems can be complex and difficult to set up and maintain.
  • Additionally, they require a significant amount of data in order to function properly, which can be difficult to obtain and keep up to date.
  • Finally, MRP-II systems can be inflexible, making it difficult to adapt to changes in the manufacturing process or the marketplace.

Overall, Manufacturing Resource Planning (MRP-II) is a comprehensive system that can be beneficial for manufacturing companies. It can help improve resource utilization and overall efficiency, while also providing the ability to simulate different scenarios.

Related Links

Manufacturing resource planning
Manufacturing Resource Planning (MRP II) Definition
What is Manufacturing Resource Planning (MRP II)? – Definition from Techopedia
Chapter 2 – Manufacturing Resource Planning (MRP II)

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