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Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP by hand as well. An MRP system is intended to simultaneously meet three objectives:
While MRP was primarily concerned with materials, MRPII was concerned with the integration of all aspects of the manufacturing process, including materials, finance and human resources. Like today's ERP systems, MRPII was designed to tell us about a lot of information by way of a centralized database.
Joseph Orlicky (December 31, 1922 – December 1986) was a Czech-born American pioneer of computerized materials management, manufacturing specialist and author who created the Material requirements planning (MRP). [1] [2] He was the author of the first book on Material Requirements Planning in 1975. [3] [4] [5]
BPCS includes MRP logic to manufacturing operations, provided there are high standards of data validity such as engineering specifications and inventory accuracy. It runs on several systems, with IBM I, being the most popular. It is written in AS/SET CASE tool, RPG, SQL and other languages supported on IBM I. [3]
Inputs may be automatically generated by an ERP system that links a sales department with a production department. [4] For instance, when the sales department records a sale, the forecast demand may be automatically shifted to meet the new demand. Inputs may also be inputted manually from forecasts that have also been calculated manually.
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The concept of MRP has been criticized as incompatible with the free market system, because it involves manufacturers deciding what profit retailers will make. [6] It is easy for sellers to charge more than the MRP by charging for 'services' on top of the item price, such as a 'cooling charge' for cold drinks, or by manufacturers setting the ...
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