Briefly compare the concepts of MRP and ERP. How are they the same? Different?
Both ERP and MRP are regarded as two acronyms to deal with in the alphabet soup of IT which apply to manufacturing organizations. ERP that is stands for Enterprise Resource Planning is an Information system formulated to coordinate processes, information as well as resources within a firm. Material Requirement Planning (MRP) is an information system and inventory control system used by manufacturing firms to calculate adequate levels of inventory to assure that required materials are available when needed. Manufacturing Resource Planning (MRPII) further evolved from MRP in order to calculate more precise manufacturing requirements of firms including shop floor control, scheduling, detailed capacity planning and such other calculations. Today’s ERP system evolved from yesterday’s manufacturing resource planning systems. Material Resource Planning (MRPII) is a more specialized type of information system used specifically to plan the resources which are utilized in the manufacturing process of a firm and can include shop floor management, purchasing, bills of materials, quoting and work orders. ERP differs from MRP as it incorporates more features than its predecessors. Most ERP applications also have MRP abilities assembled in that incorporate work orders, quoting, bills of materials, shop floor management, materials management etc.
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