Importance Of Manufacturing Resource Planning

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Manufacturing Resource Planning (MRP 2) is defined by the American Production and Inventory Control Society as an effective method for the planning of all the resources of a manufacturing company (Higgins, Leroy and Tierny 1996).Ideally, it addresses operational planning in units, finance management and forecasting, business and production planning, master and capacity requirement planning, job costing, order processing, shop control time and attendance ,performance measurement and sales planning. The output data from business and production planning, master scheduling, material and capacity requirement planning are integrated with financial reports such as business plans, purchase commitment reports, shipping budgets, inventory and projection in dollars. Moreover, it is descendent of the Material Requirement Planning (MRP) system, which is a set of technique that uses bills of material, data, inventory and a master production schedule to calculate the requirement for materials in a manufacturing company.
Simply put, the whole task of manufacturing resource planning involves the co...

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