Materials Requirements Planning

- Production planning, scheduling, and inventory control system used to manage

manufacturing processes.
- An MRP systems is intended to simultaneously meet three objectives:
 Ensure materials are available for production and products level are available
for delivery to customers.
 Maintain the lowest possible material and products level in store.
 Plan manufacturing activities, delivery schedules and purchasing activities.
- MRP setup helps companies to achieve three main points. First, It helps
manufacturers to plan and schedule their production operation such a way that it will
not require any excessive inventory. It also helps to determine how much finished
goods and by what date will be available for shipping to the customer.

Enterprise Resource Planning

- The integrated management of core business processes, often in real-time and
mediated by software and technology.
- ERP’s scope usually implies significant changes to staff work processes and
practice. Implementation time depends on business size, number of modules,
customization, the scope of process changes, and the readiness of the customer to
take ownership for the project.
- ERP reduces inventory storage and increases delivery efficiency and requires up-to-
date data. Inhibits seamless communication between suppliers and customers who
use the same ERP system uncustomized. Can create order reliance on
customization, undermining the principles of ERP as a standardizing software
platform