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Manufacturing Resource Planning (MRP II)

Manufacturing

Definition

MRP II is an integrated method for effective planning of all resources of a manufacturing company.

Detailed Description

Manufacturing Resource Planning, or MRP II, is an extension of Material Requirements Planning (MRP). It not only manages manufacturing processes but also integrates cross-functional business processes including finance, human resources, and inventory management. MRP II systems are designed to optimize the use of manufacturing resources, improve decision-making processes, and increase overall operational efficiency. MRP II systems tend to cover a variety of functions including demand forecasting, capacity planning, production scheduling, and shop floor management.

Key Features

  • Capacity requirements planning
  • Forecasting and demand management
  • Integrated supply chain management
  • Inventory management and optimization
  • Production scheduling and shop floor control

Common Modules

Capacity Planning

Ensures that a manufacturing company has enough resources to meet future production needs.

Demand Forecasting

Predicts future customer demand to optimize production planning.

Inventory Management

Oversees the ordering, storage, and use of raw materials and finished products.

Popular Implementations

Oracle MRP II

Oracle's MRP II solution is part of its comprehensive suite designed for streamlining manufacturing operations.

SAP MRP II Implementation

SAP offers an MRP II system that integrates with their ERP modules to provide comprehensive manufacturing planning solutions.