MRP, materials requirement planning or manufacturing resource planning, is a production planning and inventory control system used to optimize the manufacturing process. When MRP was extended to the rest of the organization, it became ERP, enterprise resource planning. MRP was implemented to:
use the sales forecast to know how many gadgets to make,
identify the widgets needed to make a gadget,
count and track the widgets,
know when to order more widgets
forecast the time needed to make a gadget.
ERP folded in the human resources needed for the manufacturing process and extended the functionality into the administration and paperwork processes. The purchasing department knew, based on daily usage, when to order more widgets. The receiving department knew when to...
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