It is a broad-based resource co-ordination system involving other areas of a firm in planning processes, such as marketing, finance and HR.ĭeveloped in 1990s, Enterprise Resource Planning is foundation system for domestic and global operations, supporting most or all functional areas in their daily operations. It supports sales and marketing by providing and orders promising capability. This system provides an information that is useful to all functional areas and encourages cross-functional interactions. Manufacturing Resource Planning (MRP II) –ĭeveloped in 1980s, Manufacturing Resource Planning is an expansion of closed loop MRP for managing an entire manufacturing company. The main objective of MRP is to determine which material is required, quantity required and by when it is required.Ģ. This process involves monitoring of stocks and demand, leading to automatic creation of procurement proposals for purchasing or production.
The function of MRP is to provide material availability i.e, it is used to produce requirement quantities on time.
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