What is Manufacturing Resource Planning (MRP)?

Developed in the early 1980s, manufacturing resource planning, also known as MRP II, is a software system that expands the scope of material resource planning to involve other functions, such as finance and marketing, in a manufacturer’s production operations.

MRP allows managers to accurately visualize scheduling and inventory and effectively monitor costs by leveraging real-time data to create a production schedule that optimally uses raw materials, machines and human resources.

Related Terms

What is Master Vendor Data Management?What is Material Requirements Planning (MRP)?What is Materials Management?What is MRO in Procurement?What is MRO Inventory?