Manufacturing Resource Planning

A method for effective planning of all manufacturer's resources. Enables operational planning (in units), financial planning (in dollars) and simulation of various situations by answering "what if" questions. Consists of interrelated functions, including such major functions as:

• Business-planning,
• Manufacturing and sales planning,
• Output planning,
• Master production schedule (MPS),
• Material requirement planning (MRP),
• Capacity requirement planning (CRP),
• Production capacities and materials support control systems.

American Production and Inventory Control Society (APICS) has developed MRP II standards, which include detailed description of 16 groups of major functionalities. Integrated financial statements, generated with MRP II systems, contain the following information:

• Business-plan,
• Order commitment report,
• Shipping budget,
• Inventory cost .